Oil prices jump, Wall Street under pressure with Hormuz, inflation in focus

Key Points:

• Wall Street indexes declined modestly on Monday amid investor focus on the Federal Reserve's interest rate outlook and potential U.S.-Iran negotiations to reopen the Strait of Hormuz, with the Dow down 0.25%, S&P 500 down 0.11%, and Nasdaq down 0.42%.
• Oil prices surged over 4%, with Brent crude rising 4.61% to $87.40 per barrel, driven by Iran's insistence on U.S. concessions before reopening the strategic waterway, increasing geopolitical uncertainty.
• Global stock markets showed mixed performance, with European shares near record highs and Asian shares rising 0.61%, while emerging market stocks also gained 0.67%, supported by strong corporate earnings momentum.
• Investors await key U.S. inflation data due Wednesday, expected to show a 3.4% year-on-year rise in the consumer price index, which will influence Federal Reserve policy decisions; analysts currently anticipate no rate hikes for the remainder of the year.
• Bond yields edged higher with the U.S. 10-year note yield rising to 4.701%, while the dollar strengthened slightly against major currencies; meanwhile, Bank of Japan policymakers signaled potential faster interest rate increases due to mounting inflation risks.