Global Stocks Decline on Hormuz Concerns, High Oil Prices

Global stocks declined on Monday as concerns about the Strait of Hormuz and high oil prices persisted, despite expectations that the Federal Reserve would not raise US interest rates soon.

The Straits of Hormuz, a crucial energy waterway, has been a point of contention between the United States and Iran. The ongoing diplomatic gridlock has kept crude prices elevated, said David Morrison, analyst at Trade Nation.

Oil prices edged higher as the US and Iran showed no signs of reaching a deal to reopen the Strait to shipping traffic after nearly six months of war. Brent North Sea Crude rose 0.3 percent to $88.78 per barrel, while West Texas Intermediate increased by 0.1 percent to $82.48 per barrel.

In early trading in New York, the Dow and S&P 500 were marginally lower, while the tech-heavy Nasdaq was slightly higher. European markets also declined, with London's FTSE 100 down 0.2 percent and Paris' CAC 40 falling by 0.6 percent.

Earnings releases from top retailers Walmart, Home Depot, and Target this week could provide a clearer view of sentiment among American consumers. Ipek Ozkardeskaya, analyst at Swissquote, said that even poor results might help the US stock market by further taming inflation worries and easing Fed hike bets.