US pre-open: Futures retreat as failed Iran talks prompt US naval blockade

13th Apr 2026 11:01

(Sharecast News) - Wall Street futures were in the red prior to the opening bell on Monday after Donald Trump announced a blockade of the Strait of Hormuz, with weekend peace talks between Washington and Tehran ending without an agreement.

As of 1245 BST, Dow Jones futures were down 0.45%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.50% and 0.47% lower, respectively.

The Dow closed 269.23 points lower on Friday as investors paused for breath following the recent rally, with a key inflation reading and geopolitical developments firmly in focus.

As for Monday, the collapse of negotiations in Islamabad reignited concerns that the conflict with Iran could drag on, fuelling higher oil prices and adding further strain to the global economy. West Texas Intermediate crude jumped 7.48% to $103.79 a barrel following the announcement, while benchmark Brent rose 7.08% to $101.94 a barrel.

"Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz," Trump said. "The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION."

US Central Command said it would begin blocking all maritime traffic in and out of Iran's ports at 1500 BST on Monday, though vessels using the strait to reach non‑Iranian ports would not be affected.

The blockade comes after JD Vance left Islamabad without a deal, citing Iran's refusal to halt its pursuit of nuclear weapons, as well as Tehran's demands for control of the Strait of Hormuz, war reparations and the release of frozen assets. Pakistani officials later said they would attempt to restart talks in the coming days.

Trump, who announced the naval blockade after the talks broke down, was also said to be considering resuming military strikes on Iran, according to the Wall Street Journal.

On the macro front, March existing home sales figures will be released at 1330 BST.

In the corporate space, earnings season kicked off before the opening bell as Goldman Sachs posted first‑quarter numbers on Monday, delivering earnings and revenue that came in ahead of Wall Street forecasts at $17.55 per share and $17.23bn, respectively.

Reporting by Iain Gilbert at Sharecast.com