The U.S. stock market's record-breaking rally slowed on Monday after uncertainty rose over the weekend about what will happen next in the Iran war while oil prices rose.

The S&P 500 inched 0.1% higher to its latest all-time high, a downshift following weeks of big gains driven by strong corporate profit reports and hopes that the economy can avoid a worst-case scenario because of the war. The Dow Jones Industrial Average dipped 62 points (0.1%) while the Nasdaq composite rose 0.2% to its own record.

Oil prices surged over 2.5% as the Strait of Hormuz remains effectively closed, trapping crude in the Middle East and away from global customers, including Iran's blockaded oil. Iran offered to reopen the strait if the U.S. ends its blockade, with nuclear talks later, but President Trump rejected mediation via Pakistan and aims to squeeze Iran further. Brent crude for June settled at $108.23 (up 2.8%), and July at $101.69 (up 2.6%), far above pre-war $70 levels that once spiked near $120.

Despite higher fuel costs, major U.S. firms reported stronger-than-expected Q1 2026 profits, boosting the S&P 500 by 13% from its late March low. This week brings key earnings: Alphabet, Amazon, Meta, and Microsoft on Wednesday, followed by Apple on Thursday.

Verizon Communications joined the list of companies topping analysts' expectations on Monday, and its stock rose 1.5% after the company said it added more postpaid phone customers than it lost during a first quarter for the first time since 2013. Domino's Pizza fell 8.8% after it reported weaker profit and revenue for the latest quarter than analysts expected.

In stock markets abroad, indexes slipped in Europe following a stronger finish in Asia. South Korea's Kospi jumped 2.2% and Japan's Nikkei 225 rose 1.4% for two of the world's bigger moves.

In the bond market, Treasury yields ticked higher following the rise in oil prices. The yield on the 10-year Treasury note rose to 4.33% from 4.31% late Friday.