Dow falls 350 points, oil surges above $100 after Trump announces Strait of Hormuz blockade

• Brent crude oil futures jumped 7.1% to $101.95 per barrel while national average gasoline prices hit $4.13 per gallon
• The US Navy blockade began at 10 a.m. ET Monday, targeting Iranian ports while allowing passage to non-Iranian destinations through the strait
• Trump indicated oil prices may not decline soon and could remain 'around the same' or 'maybe a little bit higher' by fall midterm elections

Market Summary: Oil Surges Past $100 as Trump Announces Strait of Hormuz Blockade

Market Performance:

U.S. stocks declined Monday morning with the Dow Jones falling 354 points (-0.7%), while the S&P 500 and Nasdaq each dropped 0.3% as of 9:35 a.m. ET.

Energy Markets:

Oil prices surged dramatically after President Trump announced a U.S. blockade of the Strait of Hormuz:

• Brent crude: up 7.1% to $101.95/barrel
• West Texas Intermediate: up 6.7% to $95.59/barrel
• National average gasoline prices: $4.13/gallon

Key Development:

Following failed U.S.-Iran negotiations over the weekend, Trump declared an immediate naval blockade of the Strait of Hormuz, a critical waterway handling 20% of global oil supplies. The blockade targets Iranian ports specifically, with U.S. Central Command set to begin enforcement at 10 a.m. ET Monday. Non-Iranian vessels using the waterway will not be affected.

Geopolitical Context:

Vice President JD Vance's 21-hour talks in Pakistan yielded no agreement. Iran refused to commit against pursuing nuclear weapons and demanded control of the strait, war reparations, and asset releases. The conflict has already caused the worst energy supply disruption in history and pushed oil prices to two-year highs.

Market Implications:

Analysts warn of continued volatility as investors reassess valuations amid the prolonged Middle East crisis. Trump suggested oil prices might not decline before midterm elections, potentially remaining "the same or maybe a little bit higher."

Upcoming Catalyst:

Major banks including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Morgan Stanley report earnings this week, which analysts hope may shift market focus from oil prices to corporate fundamentals.