Stock futures fell on Monday as tensions between the U.S. and Iran escalated over the weekend with the seizure of an Iranian-flagged cargo ship. Dow Jones Industrial Average futures shed 258 points, or 0.5%. S&P 500 futures lost 0.5%, while Nasdaq-100 futures declined 0.4%. President Donald Trump on Sunday said the U.S. had fired on and seized an Iranian-flagged cargo ship in the Gulf of Oman. This comes after Iran declined to join another round of peace talks in Pakistan planned by the U.S. The Iranian ship “is under U.S. Treasury Sanctions because of their prior history of illegal activity. We have full custody of the ship, and are seeing what’s on board,” Trump said in Truth Social post. Trump also threatened to blow up all power plants and bridges in Iran if the country didn’t agree to a deal with the U.S. A ceasefire between the two countries will expire this week. Wall Street is coming off a winning week, with the S&P 500 and Nasdaq Composite climbing to all-time highs following a cease-fire between Iran and Lebanon. At the time, Iran had declared that the Strait of Hormuz was reopened, though by Saturday vessel traffic through that key shipping lane was restricted again, with state media saying the U.S. “did not fulfill their obligations.” Trump has reiterated that the U.S. blockade of the strait would remain in place until Iran agreed to U.S. demands, despite the Iranian declarations. The S&P 500 last week gained 4.5%, while the Nasdaq Composite popped 7.2%. The latter also posted on Friday its 13th consecutive winning session, matching a streak not seen since 1992. “After the Nasdaq has rallied for 13 days in a row on hopes for a deal, we ended the week very overbought on a short-term basis. And now the situation with Iran has gotten even more complicated and uncertain on when this conflict will end and when the Strait will fully reopen without fear of attack,” Peter Boockvar, chief investment officer at OnePoint BFG Wealth Partners, told CNBC in an email. “The only question with Monday trade, assuming news doesn’t change again, will be the extent of the market pullback?” he added. U.S. Treasury yields edged higher on Monday after a dramatic weekend that saw the Strait of Hormuz reopened and subsequently closed by Iran, with the two-week ceasefire set to expire on Tuesday. The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — rose more than 1 basis point to 4.262%. The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was more than 2 basis points higher at 3.725%. The longer-dated 30-year Treasury bond yield was seen trading up less than 1 basis point at 4.892%. Asia-Pacific markets were mostly higher Monday, as investors continued to keep a cautious eye on developments in the Middle East amid renewed tensions between Iran and the U.S. South Korea’s Kospi pared earlier gains, ending Monday’s session at 0.44% higher, while the small-cap Kosdaq advanced 0.41%. SK Hynix was among the best performers on the Kospi Index, rising over 3% following news that it has started mass production of next-gen AI server memory designed for Nvidia’s Vera Rubin platform. Japan’s Nikkei 225 rose 0.60% to 58,824.89, while the Topix gained 0.43% to 3,777.02. Australia’s S&P/ASX 200 was little changed at 8,953.30. Mainland China’s CSI 300 index added 0.61% at 4,757.44, while Hong Kong’s Hang Seng index was 0.77% higher at 26,361.07. Crude oil prices rose Monday, as the U.S. and Iran teetered on the brink of a renewed war after attacks on commercial ships in the strategically vital Strait of Hormuz. West Texas Intermediate futures for May delivery rose 5.6% to $88.54 per barrel by 6:09 a.m. ET. International benchmark Brent crude futures for June delivery advanced 4.3% to $94.18. Gold prices inched lower on Monday as the dollar firmed, while news the Strait of Hormuz is closed again pushed oil prices higher and revived inflation fears. Spot gold was down 0.7% at $4,795.99 per ounce after hitting its lowest level since April 13 earlier in the session. U.S. gold futures for June delivery fell 1.3% to $4,817.10. “Gold prices are lower today after the U.S.-Iran war ceasefire that markets celebrated last week appeared to be breaking down,” said Ilya Spivak, head of global macro at Tastylive.