US Stocks Slide as Trump Reinstates Iranian Shipping Blockade and Oil Prices Rise

US stocks retreated after President Donald Trump said he was reinstating a blockade on Iranian shipping through the Strait of Hormuz, a move that pushed oil prices higher and revived concerns about renewed inflationary pressure. The S&P 500 fell 0.79% to close at 7,515.34, while the technology-heavy Nasdaq Composite dropped 1.55% to 25,873.18 and the Dow Jones Industrial Average slipped 138.37 points, or 0.26%, to 52,498.64. The announcement, made on social media, described the measure as targeting only Iranian vessels and their customers. The escalation follows an exchange of missile strikes over the weekend and comes after weeks of tenuous ceasefire conditions in the region, with shipping through the strait already slowing considerably. Higher crude prices complicate the outlook for central banks, reinforcing expectations that the Federal Reserve may need to raise rates rather than cut them. Asian markets also fell sharply, with South Korea's Kospi dropping nearly 9% and Japan's Nikkei 225 losing 1.92%. Investors now face a week combining geopolitical risk with major inflation data and the start of corporate earnings season.