S&P 500 Holds Steady as Hormuz Tensions Escalate

The S&P 500 (SPX) is trading slightly lower on Monday after the U.S. attacked and seized an Iranian-flagged cargo ship traveling near the Strait of Hormuz over the weekend.

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The ship, called the Touska, was attempting to breach the U.S. blockade on ships entering and exiting Iranian ports. “The TOUSKA is under U.S. Treasury Sanctions because of their prior history of illegal activity,” Trump said in a Truth Social post. “We have full custody of the ship, and are seeing what’s on board.”

Iran Warns of Retaliation as Blockade Tensions Rise

Iran vowed to retaliate with a “decisive response” and warned that the action violated the ceasefire between the two countries, which is set to expire on Tuesday, April 21.

The U.S. initiated a naval blockade of ships entering and exiting Iranian ports on April 13 after the first round of negotiations between the two sides fell through. The U.S. is open to a second round of talks and has sent Vice President J.D. Vance and Special Envoy to the Middle East Steve Witkoff to Pakistan to lead the effort. Iran has not yet confirmed its participation.