-- The benchmark US stock measures were tracking in the red before the opening bell Monday amid renewed tensions between the US and Iran, while investors prepare for a busy week of corporate earnings.
The S&P 500, the Dow Jones Industrial Average and the Nasdaq declined 0.5% each in premarket activity. The indexes finished Friday's trading session higher, with the Nasdaq achieving its longest winning streak since 1992.
In a social media post on Sunday, President Donald Trump said the US navy intercepted and seized an Iranian-flagged cargo ship in the Gulf of Oman. The US Central Command confirmed in a statement that its forces disabled the Iranian vessel following its attempts to sail toward an Iranian port.
Last week, the US enforced a blockade of all maritime traffic entering and exiting Iranian ports after peace talks between Washington and Tehran in Pakistan failed to materialize a conclusive deal.
In a separate post on social media, Trump said Iran violated its ceasefire agreement with the US by firing bullets at a French ship and a British freighter in the crucial Strait of Hormuz. Trump urged Iran to accept a "very fair and reasonable deal" offered by the US.
"If they don't, the United States is going to knock out every single power plant, and every single bridge, in Iran," Trump wrote.
Iran on Sunday denied it would participate in a fresh round of negotiations with the US in Pakistan this week, CNBC reported, citing Tehran's state news agency. Trump said his representatives will be in Pakistan on Monday for talks.
Over the weekend, Iran reversed its earlier decision to reopen the Strait of Hormuz for all commercial vessels, citing Trump's decision to keep the blockade of Iranian ports.
West Texas Intermediate crude oil increased 5.9% to $88.76 a barrel in recent premarket action, while Brent rose 6% to $87.48.
Treasury yields were trending upwards before the open, with the two-year rate inclining 2.7 basis points to 3.73% and the 10-year rate adding 2.2 basis points to 4.27%.
Several major companies are scheduled to release their latest quarterly results this week, including electric vehicle manufacturer Tesla (TSLA), health insurance giant UnitedHealth (UNH), chipmaker Intel (INTC) and consumer goods company Procter & Gamble (PG).
Cleveland-Cliffs (CLF) and Bank of Hawaii (BOH) are expected to post their earnings pre-bell, among others. Steel Dynamics (STLD) and Alaska Air (ALK) report their results after the markets close.
TopBuild's (BLD) shares jumped 18% before the bell as the company agreed to be acquired by QXO (QXO) in a deal worth about $17 billion. USA Rare Earth (USAR) rose 3.4% after it agreed to purchase Serra Verde, the owner of the Pela Ema rare earth mine and processing plant in Brazil, in a deal worth about $2.8 billion.
With no major economic reports scheduled for Monday, traders will be awaiting last month's retail sales report on Tuesday.
Gold fell 1.3% to $4,816 per troy ounce, while bitcoin nudged up 0.5% to $75,342.