Why Is the Stock Market Down Today, 5/7/26?

After reaching new intraday all-time highs in early morning trading, both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are now in the red.

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While Iran has not yet issued an official response to the U.S. peace plan, the market fell lower after senior Iranian official Mohsen Rezaee said Tehran will not accept a deal that includes the reopening of the Strait of Hormuz unless the U.S. pays for war damage reparations. He called on the U.S. to deliver “tangible benefits” and said Iran will maintain its “resistance.”

Brent Bounces Back above $100 Per Barrel

Brent crude (BZ), the international benchmark for oil, rebounded above $100 following Rezaee’s statement after falling below the level earlier in the day.

Furthermore, Iran has created a new government agency to oversee and tax vessels traveling through Hormuz, according to The Washington Post. That comes as hundreds of ships remain trapped in the Persian Gulf awaiting confirmation to pass.