US stocks decline as Middle East stalemate raises inflation fears

US stocks: US stocks represent shares of publicly traded companies listed on American exchanges and are commonly tracked through broad indexes such as the S&P 500, Dow Jones Industrial Average, and Nasdaq. They were under pressure before Monday’s session as stalled US-Iranian discussions and higher oil prices revived concerns about inflation and interest rates. Market reaction: US equity-index futures declined as investors reassessed the likelihood of a near-term diplomatic breakthrough involving Iran and the Strait of Hormuz. Oil and inflation: Higher oil prices increased concern that energy costs could sustain inflationary pressure and complicate the Federal Reserve’s interest-rate outlook. Safe-haven demand: The Middle East tensions also supported demand for traditionally defensive assets such as the US dollar and Treasuries, although Treasury prices weakened as inflation expectations rose.