U.S. stocks close lower as oil prices surge on renewed Mideast tensions

U.S. stocks ended slightly lower on Monday, with modest declines across major benchmarks as investors monitored rising oil prices amid renewed uncertainty in the Middle East.

The Dow Jones Industrial Average fell by 0.01 percent to 49,442.56. The S and P 500 sank 0.24 percent to 7,109.14. The Nasdaq Composite Index shed 0.26 percent to 24,404.39.

Six of the 11 primary S and P 500 sectors closed higher, led by materials and financials with gains of 0.56 percent and 0.34 percent, respectively. Communication services and health care were the main laggards, declining 1.41 percent and 0.93 percent, respectively.

Traders remain cautious about pricing in a worst-case scenario for the ongoing conflict, even as stocks have recovered from near-correction territory to all-time highs in recent weeks.

Oil prices jumped sharply on Monday. West Texas Intermediate crude for May delivery surged 6.87 percent to settle at 89.61 U.S. dollars per barrel on the New York Mercantile Exchange. Brent crude for June delivery gained 5.64 percent to settle at 95.48 dollars per barrel on the London ICE Futures Exchange.

While investors continue to monitor developments in the Middle East, attention is expected to gradually shift back to fundamental factors, according to Scott Welch, chief investment officer at Certuity.

"It is important to remember that the market was not cheap before the war started, and the recent rally has only brought us back slightly past breakeven for the year," he said. "We expect investors will soon once again turn their attention to more fundamental issues -- valuations, earnings potential, inflation, the economy, the labor markets, and Fed policy."

Shares of most of the "Magnificent Seven" technology giants ended lower on Monday. Tesla, which is scheduled to report quarterly results on Wednesday, declined 2.03 percent.

Marvell Technology rose nearly 6 percent to an all-time high after a report over the weekend said the chipmaker was in talks to design new custom artificial intelligence chips for Google.

U.S. stocks close lower as oil prices surge on renewed Mideast tensions

Iran's supreme leader demanded war reparations from the United States and Israel on Monday and vowed to escalate the country's management of the Strait of Hormuz, while President Donald Trump said he would not lift the U.S. blockade on Hormuz until Tehran agrees to a deal.

In a statement posted on his official social media account on Monday, Iran's Supreme Leader Mojtaba Khamenei said that Iran would hold accountable those responsible for attacks against the country and seek compensation for wartime losses.

He also called for a new phase in the management of the Strait of Hormuz, vowing never to abandon Iran's legitimate rights and regarding all "resistance fronts" in the region as a unified whole.

On April 9, the Iranian supreme leader outlined the three principles in a written address marking 40 days since the death of former Supreme Leader Ali Khamenei.

Also on Monday, President Trump said in his social media post that the United States will not lift its blockade on Iranian ports until a deal is reached.

The U.S. forces have enforced a naval blockade on vessels entering and leaving Iranian ports since April 13, with the U.S. Central Command said one day later that Iran's maritime trade had been completely cut off.

Iran responded by opening the Strait of Hormuz to commercial shipping on April 17, but reversed course on the following day, resuming control of passage after the United States refused to lift its blockade.

Pakistan is now actively mediating in an effort to persuade the United States to end the blockade, a move seen as essential for Iran's participation in negotiations, a senior Iranian official said on Monday.

Iran reiterates core positions, US vows no let-up in blockage