Dow Jones set to fall as Trump's Iran blockade overshadows earnings season

• Trump announced a blockade of Iranian ports and the Strait of Hormuz starting at 10am ET, with Iran warning of a 'harsh response' to what it called an 'illegal act'
• Oil prices jumped 7.7% to over $104 per barrel on blockade concerns, while global markets declined moderately with Japan's Nikkei down 0.7% and Germany's DAX down 1%
• Despite tensions, 27 S&P 500 companies report earnings this week, including major banks (Goldman Sachs, JP Morgan, Citigroup, Wells Fargo) and tech names (Netflix, TSMC, ASML)

Market Summary: Iran Blockade Pressures Markets as Earnings Season Begins

Market Movement:

US futures opened lower on April 13, 2026, with Dow Jones, S&P 500, and Nasdaq futures all down approximately 0.5%. Global markets followed suit, with Japan's Nikkei declining 0.7%, Hong Kong's Hang Seng falling 0.9%, Germany's DAX down 1%, and the FTSE 100 slipping 0.3%.

Key Catalyst:

Geopolitical tensions intensified after US-Iran negotiations broke down. President Trump announced a blockade of Iran's ports and the Strait of Hormuz, set to begin at 10am Eastern Time. The US is demanding a 20-year freeze on nuclear enrichment and free navigation through Hormuz without tax payments. Iran warned of a "harsh response" to what it called "illegal" shipping restrictions.

Market Impact:

WTI crude oil surged 7.7% to over $104 per barrel on Monday morning, reflecting supply concerns given the strategic importance of the Strait of Hormuz to global energy markets.

Diplomatic Outlook:

Despite tensions, mediators from Pakistan, Egypt, and Turkey continue pushing for a resolution ahead of a ceasefire deadline next week. Reports suggest "all parties still believe a deal is possible."

Earnings Season:

Investor attention shifts to corporate results from 27 S&P 500 companies this week. Major announcements include:

• Monday: Goldman Sachs
• Tuesday: JP Morgan, Citigroup, Wells Fargo, Johnson & Johnson
• Wednesday: Morgan Stanley, Bank of America, ASML
• Thursday: Netflix, TSMC, PepsiCo, Abbott Labs, Charles Schwab, Prologis

Key Sectors: Financial services, healthcare, technology, and energy remain in focus as geopolitical risks compete with earnings season for market direction.