Global equity markets kicked off the trading week with a split performance Monday, as a wave of bullish momentum for semiconductor and technology stocks, carried over from last Friday’s record-breaking rally on Wall Street, offset ongoing uncertainty stemming from escalating tensions in the Strait of Hormuz. Following the U.S. military’s launch of a new operation early Monday to escort commercial vessels through the strategic shipping chokepoint, global oil prices staged a sharp rebound, with international benchmark Brent crude climbing more than $2 per barrel.
Iran has formally rejected the U.S. escort plan, but Foreign Ministry spokesman Esmail Baghaei confirmed Sunday in comments reported by Iran’s state-run judiciary Mizan News Agency that Tehran is currently reviewing the U.S. response to its latest diplomatic proposal to de-escalate the ongoing war. By mid-trading Monday, U.S. West Texas Intermediate crude had risen $1.80 to settle at $103.73 per barrel, while Brent crude jumped $2.23 to hit $110.40 per barrel.
In European trading, indexes ended the day with minor moves after a volatile session. Germany’s DAX index inched up 0.1% to close at 24,303.77, while Paris’s CAC 40 slipped 0.5% to 8,072.91. U.K. markets remained closed for a public holiday, leaving trading volumes thin across much of the continent. U.S. equity futures pointed to a muted open, with S&P 500 futures trading almost flat and Dow Jones Industrial Average futures down 0.3% heading into the New York trading session.
Across Asian markets, performance was far more dynamic, driven by broad buying of technology and semiconductor shares following last week’s strong U.S. earnings. Hong Kong’s Hang Seng Index gained 1.2% to close at 26,095.88, while South Korea’s Kospi surged 5.1% to end at 6,936.99, led by a 5.4% jump in shares of tech giant Samsung Electronics. In Taiwan, the Taiex index rallied 4.6%, propelled by a 6.6% gain in market heavyweight Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker. Australia’s S&P/ASX 200 bucked the upward trend, slipping 0.4% to 8,697.10, while markets in mainland China and Japan remained closed for Golden Week national holidays.
Analysts note that much of the near-term trajectory for global markets will depend on diplomatic progress to end the war in Iran and resolve the shipping backlog that has choked the Strait of Hormuz, a chokepoint through which roughly 20% of global oil supplies pass daily. In a Monday market commentary, Stephen Innes of SPI Asset Management noted that the oil market “remains the fulcrum” of global market volatility, with hundreds of tankers, bulk carriers, and cargo ships still stranded across the Persian Gulf. Idle vessels have created widespread storage constraints that have forced energy producers to curb production, as there is no available capacity to hold newly extracted crude.
Thousands of seafarers have been stuck onboard stranded vessels in the Gulf since the outbreak of the war. Multiple crew members told the Associated Press they have witnessed intercepted drones and missiles explode over nearby waters, while their ships face growing shortages of drinking water, food, and other critical supplies.
The U.S. military operation, dubbed “Project Freedom” by former President Trump, launched early Monday morning. U.S. Central Command confirmed the mission involves guided-missile destroyers, more than 100 aircraft, and 15,000 active service members, though the Pentagon has not yet responded to questions about the operational deployment of these forces.
Last Friday, Wall Street closed out its fifth consecutive winning week with fresh record highs for major indexes. The S&P 500 gained 0.3% to hit an all-time closing high of 7,230.12, while the Nasdaq Composite added 0.9% to close at a record 25,114.44. The Dow Jones Industrial Average dipped 0.3% to 49,499.27. Tech giant Apple led the rally after reporting better-than-expected quarterly profits, with its share price climbing 3.3% to provide the single biggest boost to the broad S&P 500.
Long-term market performance has continued to track corporate earnings, and U.S. companies have broadly outperformed profit expectations through the first quarter of 2026. This resilience has held up even amid the ongoing Iran war and elevated oil prices that have eroded consumer confidence for many U.S. households.
In currency markets Monday, the U.S. dollar edged up slightly to 156.92 Japanese yen, up from 156.80 yen in prior trading. The dollar dipped as low as 155.75 yen at one point, with thin trading volumes amplifying volatility due to the closure of Japanese markets. The euro fell to $1.1717, down from $1.1746 in the previous session.