April 20, 2026: US stock futures fell sharply on Sunday night after geopolitical tensions between the United States and Iran intensified following the seizure of an Iranian-flagged cargo vessel.
Futures linked to the Dow Jones Industrial Average dropped 452 points, or 0.9%, while S&P 500 futures declined 0.8%. Futures on the Nasdaq-100 slipped 0.6%, indicating a weak start for Wall Street.
Escalation in Gulf of Oman
US President Donald Trump said American forces had fired upon and seized an Iranian-flagged cargo ship in the Gulf of Oman, citing prior sanctions violations.
In a statement, Trump said the vessel was under US Treasury sanctions and confirmed that it is now in US custody, with authorities assessing its contents.
The development comes after Iran refused to participate in a fresh round of peace talks in Pakistan, raising concerns over further escalation. Trump also issued strong warnings, threatening severe retaliation if Iran does not agree to US terms, as the current ceasefire approaches expiry this week.
Oil prices spike
Crude oil prices surged amid fears of supply disruption in the region:
- WTI crude: up 8% to $90.54 per barrel
- Brent crude: up 6% to $96.50 per barrel
The spike follows renewed uncertainty around the Strait of Hormuz, a key global oil transit route, where vessel movement has again become restricted.
Markets had rallied last week
The selloff in futures comes after a strong rally on Wall Street last week, driven by optimism around a temporary ceasefire in West Asia.
- S&P 500 gained 4.5%
- Nasdaq Composite surged 7.2%
The Nasdaq also recorded its 13th consecutive day of gains, marking its longest winning streak since 1992.
