Hormuz Deal Hinges on US Demands as Oil Prices Soar

Oil prices surged by over 4% on Monday, while Wall Street indexes retreated as markets focused on the Federal Reserve's interest rate outlook and a potential deal between the U.S. and Iran to reopen the Strait of Hormuz.

Iran insisted that the United States must satisfy several demands before the waterway can reopen, fueling uncertainty in global trade.

The Dow Jones Industrial Average fell 0.25% to 53,901.23, while the S&P 500 lost 0.11% to 7,749.16 and the Nasdaq Composite was down 0.42% at 26,577.28.

Brent crude futures rallied 4.61% to $87.40 per barrel, and U.S. crude jumped 4.63% to $81.80.