Wall Street hesitates and oil prices climb with uncertainty about the Strait of Hormuz

The action was stronger in the oil market, where the price for a barrel of Brent crude climbed 2% to $110.37 and briefly topped $114 during the morning. Iran’s closure of the Strait of Hormuz due to its war with the United States has kept oil tankers pent up in the Persian Gulf and away from customers worldwide. That in turn has sent the price of Brent soaring from roughly $70 per barrel before the war.

President Donald Trump said Sunday that the United States would guide ships through the strait, which could get oil flowing again and bring down its price. But prices instead climbed after Iranian news agencies claimed Monday that Iran had struck a U.S. Navy vessel southeast of the Strait of Hormuz, accusing it of “violating maritime security and navigation norms.”

The U.S. military quickly rejected the claims and later said two American-flagged merchant ships had “successfully transited through the Strait of Hormuz.”

Even with all the uncertainty about how long the war with Iran will last, the U.S. stock market has managed to power to record after record. Hope is still high on Wall Street that the global economy can avoid a worst-case scenario because of the war. And in the meantime, companies continue to deliver big growth in profits.

Tyson Foods joined the list Monday, topping analysts’ expectations for both profit and revenue during the latest quarter. It sold less beef than it did a year ago, but it did so at prices that were 11.5% higher, so its total beef revenue edged up. After initially rising, its stock swung lower and was down 2.2%.

Norwegian Cruise Line Holdings likewise delivered better profit for the latest quarter than analysts expected. But it’s feeling the effects of the war, which has not only raised pressure on fuel prices but also pushed some customers to think twice about travel plans, particularly to Europe. The cruise operator said some “execution missteps” also have bookings below where it would like.

Its stock fell 4.7%.

Jumping to one of Wall Street’s biggest gains was eBay, which climbed 5.6% after GameStop said it wanted to buy its much bigger rival for $125 per share in cash and stock. Coming into the day, eBay had a total market value that was nearly quadruple GameStop’s.

GameStop said it has already built a 5% stake in eBay and sees opportunities to cut $2 billion in annual costs quickly. GameStop, whose stock briefly soared to market-shaking heights during the meme stock craze of 2021, fell 4%.

In stock markets abroad, indexes jumped 5.1% in South Korea and 1.2% in Hong Kong, while markets were closed in mainland China and Japan for holidays.

European indexes fared worse, with France’s CAC 40 falling 1%.

In the bond market, Treasury yield edged up as oil prices climbed. The yield on the 10-year Treasury rose to 4.41% from 4.39% late Friday.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.