Stocks Fall, Oil Rises as Hormuz Deal Hopes Fade: Markets Wrap
(Bloomberg) — Wall Street’s rebound attempt failed, with stocks falling as oil climbed after doubts resurfaced about an imminent US-Iran deal that would revive energy flows through the key Strait of Hormuz.
Brent crude topped $110 after Washington and Tehran rejected fresh proposals as insufficient to secure an agreement. The S&P 500 erased gains, with a renewed tech slide also weighing on sentiment. While bond moves were subdued compared with the rout that swept markets Friday, global yields hovered near multi-year highs as rising energy prices stoked inflation worries.
The White House said a proposal delivered by Iran through Pakistani mediators on Sunday lacked meaningful improvement, Axios reported. According to Tasnim, Iran said US demands were still excessive and that it would not agree to end the war at the expense of its nuclear program.
Hopes for a breakthrough in the standoff over Hormuz had earlier fueled market optimism after Iranian media said Washington proposed a temporary waiver on sanctions. The report is false, according to a US official. The strait remains effectively closed to commercial shipping, with traffic reduced to a trickle.
“The ongoing Strait of Hormuz blockade remains the dominant market driver because there is no clear endgame in sight while the buffer from global oil inventories is shrinking,” said Elias Haddad at Brown Brothers Harriman & Co.
The US is issuing a waiver allowing the sale of Russian crude oil and petroleum products that are already loaded on tankers, just days after the previous one lapsed. Treasury Secretary Scott Bessent said his department is giving a “temporary 30-day general license.” The decision underscores the pressure to address a global supply crunch caused by the war.
At Bank of America Corp., Francisco Blanch’s best-case oil-price scenario is Brent averaging $90 for the rest of the year, with the possibility that the market goes even higher if the stalemate with Iran persists or heats up.
“We have a pretty large deficit,” Blanch said on Bloomberg Television’s Surveillance. “We were running 14 million, 15 million barrels a day short, 14% to 15% short, of what we need to see for prices to stabilize, go down to $60 or $70 a barrel.”
President Donald Trump expressed frustration with Iran and told it the “clock is ticking,” hours after drones targeted a nuclear power plant in the United Arab Emirates. Tehran “better get moving, FAST, or there won’t be anything left of them,” he said on Truth Social on Sunday.
Separately, Trump noted he is “not open” to any concessions for Iran, The New York Post reported, citing a phone interview. “I can tell you they want to make a deal more than ever,” he added.
Corporate Highlights:
A jury rejected Elon Musk’s claims that OpenAI under Sam Altman’s leadership betrayed its mission to benefit the public by morphing into a for-profit business, finding that he waited too long to bring his claims against the company. The US Supreme Court turned away appeals from six pharmaceutical companies seeking to topple the Medicare drug price negotiation program that’s led to billions of dollars in discounts on top-selling treatments. Seagate Technology Holdings Plc sank after management comments at a conference sparked investor fears that the company won’t be able to keep up with soaring demand for memory chips. NextEra Energy Inc.’s $67 billion deal for rival Dominion Energy Inc., the largest utility acquisition in US history, suggests even the industry’s biggest companies need to grow in order to accommodate the power demand driven by artificial intelligence. Publicis Groupe SA agreed to buy online data broker LiveRamp Holdings Inc. for about $2.5 billion in cash, a sign of the French media firm’s continued investment in marketing technology as the advertising industry contracts. What Bloomberg Strategists say…
“Stocks are proving more sensitive to rising bond volatility, which raises the risk of a deeper selloff.”
—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 fell 0.3% as of 2 p.m. New York time The Nasdaq 100 fell 0.8% The Dow Jones Industrial Average was little changed The MSCI World Index fell 0.2% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1649 The British pound rose 0.7% to $1.3424 The Japanese yen fell 0.1% to 158.92 per dollar Cryptocurrencies
Bitcoin fell 2% to $76,649.37 Ether fell 3.7% to $2,106.59 Bonds
The yield on 10-year Treasuries was little changed at 4.60% Germany’s 10-year yield declined two basis points to 3.15% Britain’s 10-year yield declined seven basis points to 5.10% Commodities
West Texas Intermediate crude rose 1.8% to $107.27 a barrel Spot gold rose 0.1% to $4,546.31 an ounce ©2026 Bloomberg L.P.
