U.S. stock futures were slightly weaker on Monday as investors reassessed the likelihood of a near-term agreement between Washington and Tehran over the Strait of Hormuz.

Futures linked to the S&P 500 were little changed, while Nasdaq-100 futures rose around 0.2%. Dow Jones Industrial Average futures fell 58 points, or roughly 0.11%.

Asian markets were mostly positive. Japan’s Nikkei 225 gained more than 0.5%, while the Topix edged higher. South Korea’s Kospi advanced 0.53% and the Kosdaq climbed 1.48%. In Australia, the S&P/ASX 200 also rose around 0.54%.

Sentiment around the Strait of Hormuz weakened over the weekend after Iran rejected suggestions that it was holding direct negotiations with the United States over reopening the key shipping route. The comments cast doubt on expectations that an agreement allowing vessels to move freely through the strait could be reached soon.

Oil prices moved higher as those hopes faded, with WTI crude trading just above $79 a barrel after gaining around 1% on Sunday.

Expectations for a breakthrough had risen last week after U.S. Treasury Secretary Scott Bessent suggested an agreement could be close. However, President Donald Trump later said the U.S. was only “semi-negotiating” with Iran and indicated that Washington wanted to maintain economic pressure on Tehran.

The cautious start to the week follows a strong performance for U.S. equities. The S&P 500, Nasdaq Composite and Dow all recorded their strongest weekly gains since April, with the S&P 500 ending Friday at a record closing high.

Markets were supported late last week by weaker-than-expected U.S. labour data. July nonfarm payrolls unexpectedly contracted, reinforcing expectations that the Federal Reserve may avoid raising interest rates in the near term.

According to CME FedWatch data, markets are now pricing in roughly a 44% probability of a September rate increase, down from around 67% one week earlier.

The softer employment report was viewed positively by equity markets because of its implications for monetary policy, although concerns remain that weaker hiring could also point to slower economic growth.

Attention will now turn to this week’s U.S. inflation data, with both the Consumer Price Index and Producer Price Index expected to provide fresh clues on the path of prices and the Federal Reserve’s next move. No major U.S. economic releases are scheduled for Monday.

Corporate earnings will also remain in focus, with results expected this week from consumer-focused companies including On Holding and Cava Group, alongside technology names such as Super Micro and CoreWeave.

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