Stock futures are little changed as investors monitor latest in U.S.-Iran developments: Live updates – CNBC

Stocks fell on Monday as the latest developments in the Middle East sent oil prices higher, sparking further worries about instability in the region.

The Dow Jones Industrial Average shed 557.37 points, or 1.13%, closing at 48,941.90. The S&P 500 slid 0.41% to end at 7,200.75, while the Nasdaq Composite lost 0.19% to settle at 25,067.80.

On Monday, the United Arab Emirates said it that had intercepted a number of missiles fired from Iran. That’s the first time the UAE’s missile alert system was activated since the U.S.-Iran ceasefire began last month.

Oil prices increased following the action. U.S. West Texas Intermediate crude futures rose 4.39% to settle at $106.42 per barrel, while international benchmark Brent crude futures were up 5.8% to end at $114.44.

Energy prices were already climbing earlier in the day after conflicting reports of an Iranian attack on a U.S. warship and as Iranian media was reporting that a ship was turned back from the Strait of Hormuz.

Iran’s Navy said it blocked “American-Zionist” warships from entering the zone, according to state TV reports cited by Reuters. A separate dispatch from the Fars News Agency said two missiles hit a U.S. warship near Jask island after it ignored warnings, though neither report was independently confirmed.

U.S. Central Command later wrote in a post on X that “no U.S. Navy ships have been struck.”

In a Sunday Truth Social post, President Donald Trump announced “Project Freedom,” which he said entails the U.S. helping to “free” cargo ships of nations that aren’t involved in the Middle East conflict and that have been stranded by the Strait of Hormuz closure. The initiative is slated to start Monday, Trump wrote.

“I have told my Representatives to inform them that we will use best efforts to get their Ships and Crews safely out of the Strait,” he said in his post. “In all cases, they said they will not be returning until the area becomes safe for navigation, and everything else.” The president’s Truth Social post had no details on how such an effort would unfold.

Trump’s announcement came after Iran said on Sunday that it had received a U.S. response to its latest offer for peace talks.

Previously, on Friday, Iran reportedly sent an updated peace proposal through Pakistani mediators, boosting investors’ optimism that a settlement with the U.S. could occur. However, Trump later Friday said that he was not satisfied with Tehran’s offer and that the country was only making a deal “because they have no military left.”

“We don’t anticipate the war being resolved quickly,” said Jay Hatfield, founder and CEO at Infrastructure Capital Advisors. “We don’t think Iran is going to have an epiphany and get rid of their nuclear capabilities, and so that’s probably going to have to happen by force, and that’s not going to be well received by the market.”

Still, investors’ hopefulness over the situation in the Middle East and a strong first-quarter earnings season have driven stocks higher to new records in recent days. Even if the war is not resolved, Hatfield sees the S&P 500 hitting 8,000 by the end of the year.

Logistics stocks in particular were a sore spot on Monday after Amazon said it’s opening up its own freight, distribution, fulfillment and parcel shipping network to businesses. GXO Logistics dropped nearly 18%, while UPS and FedEx declined 10% and 9%, respectively.

— CNBC’s Garrett Downs contributed reporting.