US equity markets closed lower on Monday as investors retreated from risk assets following President Donald Trump’s announcement to reinstate a blockade on Iranian ports.
The escalation in US-Iran hostilities triggered a broad sell-off, with technology shares leading the decline as concerns over potential supply chain disruptions and rising energy costs weighed on sentiment.
The semiconductor sector faced particular pressure, with chipmakers dropping sharply as traders priced in the risk of further geopolitical instability affecting global trade routes.
The move marks a continuation of the risk-off trend that has plagued US markets in recent sessions, following declines on Wednesday and Friday as investors reduced exposure amid escalating rhetoric between Washington and Tehran.
Oil prices jumped on the news, adding to the headwinds for equity markets as higher energy costs threaten to dampen corporate margins and consumer spending.
The blockade announcement represents the latest development in a series of tensions that have kept markets on edge, with investors increasingly cautious about the potential for broader conflict in the Middle East.