U.S. stocks stall as Middle East tensions lift oil to $100+

U.S. stock indexes stalled Monday as reports of attacks in the Strait of Hormuz and Dubai lifted oil prices above $100. Brent traded around $111 a barrel and West Texas Intermediate near $103–$104. The Dow tested the 49,000 level after an earlier attempt to break 50,000.

The United Kingdom Maritime Trade Operations flagged new attacks on merchant ships and tankers in the Strait of Hormuz overnight. Separate reports described strikes in Dubai. Energy futures rose more than 2% on the reports, extending a run of crude above $100 that has lasted more than a week.

Market analyst Elior Manier wrote, “With the US rejecting the latest Iranian proposition, sellers are re-entering.” Traders cited a 49,000–49,100 pivot zone for the Dow. Near-term support levels mentioned by traders included 48,500 and a deeper floor around 48,000, with smaller support between 47,400 and 47,600.

The Nasdaq has fallen below its earlier bull channel and broke a parallel trendline. Traders identified about 27,500 as a level to watch, with prior all-time highs near 26,300 and roughly 25,000 listed as reference points. The S&P 500 formed a bearish morning candle and tested the lower edge of a shallow channel near 7,150; traders pointed to the prior highs around 7,000 as a reference.

ADP private payrolls are scheduled for Tuesday and the U.S. April nonfarm payrolls report is due Friday. Most large companies have already reported quarterly results for the season.

Not all sectors moved lower. Micron rose about 6% in early trading and Oracle outperformed peers in technology services. Financial stocks held up better than several cyclical groups while overall market breadth narrowed.

Analysts and commodity traders said they are monitoring shipping security notices because disruptions in the Gulf affect freight flows and crude supply expectations. The Strait of Hormuz remains a major route for oil shipments.

Some investors said they planned to limit risk exposure until the security situation in the Middle East and this week’s labor reports provide clearer direction. Trading remained cautious and price action stayed choppy as headlines and data developed.