Stocks tumble and oil prices rise as US-Iran ceasefire uncertain before deadline
Stock Market Wall Street (Matteo Colombo/Getty Images)
(NEW YORK) — Stocks dipped and oil prices rose in early trading on Monday as tensions mounted in the Strait of Hormuz, putting pressure on the ceasefire between the U.S and Iran a day before it’s set to expire.
The Dow Jones Industrial Average fell 25 points, or 0.07%, while the S&P 500 dropped 0.1%. The tech-heavy Nasdaq declined 0.1%.
U.S. Marines seized an Iran-flagged container ship in the Gulf of Oman on Sunday, according to CENTOM, just a day after two Indian ships came under fire in the Strait of Hormuz.
A potential second round of peace talks between the U.S. and Iran remained in doubt on Monday. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Monday that Iran has not yet made any decision regarding additional talks.
West Texas Intermediate futures, the benchmark index for U.S. oil prices, climbed more than 4% on Monday, registering at about $87 a barrel.
The escalating tensions appeared to reverse a brief thaw on Friday, when a senior Iranian official declared the strait “completely open” for tanker traffic. Within minutes, President Donald Trump celebrated the announcement as a major breakthrough.
The glimmer of relief for the critical waterway sent stock prices soaring and oil prices plummeting on Friday.
This is a developing story. Please check back for updates.
Shoppers at the Glendale Galleria in Glendale, CA on Saturday, Dec. 20, 2025. Myung J. Chun / Los Angeles Times via Getty Images
(NEW YORK) — Holiday shopping season sets forth an annual gut check for the U.S. economy, prompting buyers to splurge in a show of optimism or cut back out of fear of what next year holds.
In 2025, shoppers opened their wallets with gusto, though consumers appeared to favor low-cost options and discounts, according to spending data shared with ABC News.
The performance defied concerns overhanging the economy for months, as hiring slowed and inflation ticked higher. Seemingly undeterred, shoppers flexed their strength at the close of this year, offering some reassurance for the wider economy. Consumer spending accounts for about two-thirds of U.S. economic activity.
Holiday sales climbed 3.9% compared to last year, Mastercard SpendingPulse data showed, tracking online and in-store payments from the start of November to Christmas Eve. The data leaves out car sales and does not account for inflation.
The season-long buying spree followed a strong showing early on, as consumers revved up at the outset of the holiday season.
Digital spending on Thanksgiving jumped 5% from a year earlier, totaling $6.4 billion and exceeding expectations, Adobe Analytics data showed. On Black Friday, shoppers topped the previous day’s pace, as spending soared about 9% compared to 2024, adding up to $11.8 billion, Adobe found.
Adobe attributed the strong performance to better-than-anticipated discounts, especially for electronics. Discounts also touched an array of products from furniture to appliances to toys.
The search for price-savings marked a trend that would continue over the coming weeks.
While overall spending jumped, the largest uptick could be found in low-cost categories, according to Placer.ai, a data firm.
For instance, thrift shops and off-price retailers topped the apparel market with traffic up 11.7% and 6.6% respectively, compared to last year, Placer.ai said. Luxury chains and department stores, by comparison, posted meager gains of 1.8%, the data showed.
“Bifurcation has been a defining trend of consumer behavior in 2025 and continued to shape shopping patterns during the holiday season,” said Shira Petrack, head of content at Placer.ai.
Consumer spending among middle- and low-income Americans slowed earlier this year, triggering warnings from restaurant giants such as McDonald’s and Chipotle. A report this month showed consumer sentiment has fallen to its lowest point since a peak of pandemic-era inflation in 2022, University of Michigan data showed.
As of October, roughly half of buyers planned to use a by-now-pay-later plan for holiday shopping as a means of managing their budget, PayPal said.
Still, consumers have continued to power economic growth, even as they have balked at prices.
In the fall, shoppers helped propel the fastest quarterly U.S. economic growth in two years, federal government data last week showed.
The economy grew at a robust annualized rate of 4.3% in the third quarter in the government’s initial estimate, marking an acceleration from 3.8% growth recorded in the previous quarter, the U.S. Commerce Department said.
“Just as they have for several years now, the U.S. consumer continues to carry the baton for the economy,” Bret Kenwell, U.S. investment analyst at eToro, told ABC News in a statement.
President Donald Trump answers questions after signing an executive order to limit mail-in voting in the Oval Office of the White House, March 31, 2026, in Washington. (Alex Wong/Getty Images)
(WASHINGTON) — President Donald Trump on Thursday slapped 100% tariffs on some pharmaceutical products, ramping up his effort to boost U.S. drug manufacturing.
The move, in the form of an executive order, targets patented drugs that lack a “most favored nations” pricing agreement with the U.S. Under such agreements, companies ensure the U.S. will pay the same amount that other wealthy countries pay for similar medications.
Companies face a reduced levy if they agree to bring production to the U.S. or enter into pricing deals with the administration, the executive order says.
If companies commit to bring their manufacturing to America, then the tariff on their products will drop to 20%, the order notes.
In the event such companies also enter into a most-favored-nation agreement with the Department of Health and Human Services, then they can avert tariffs entirely while in the process of building a U.S.-based plant, according to the executive order.
Large companies, the executive order says, will receive a 120-day phase-in period before the tariffs take effect.
The fresh round of tariffs will exclude drugs made in some countries that previously entered into trade agreements with the U.S., including Switzerland, Japan, South Korea and the 27-member European Union, according to the order.
Pharmaceutical products from those countries will face a 15% tariff based on the terms of trade agreements reached with the U.S, the order notes.
This is a developing story. Please check back for updates.
ABC News’ Mary Kekatos contributed to this report.
Traders work on the floor of the New York Stock Exchange. (Photo by Michael M. Santiago/Getty Images)
(NEW YORK) — Stocks closed higher on Monday, recovering from sharp losses earlier in the day as markets whipsawed in response to developments in the U.S.-Israeli war with Iran.
The dramatic reversal on Wall Street came after U.S. oil prices turned lower on Monday afternoon. Crude prices settled at about $85 per barrel, unwinding a surge hours earlier that had reached as high as nearly $120 a barrel.
The Dow Jones Industrial Average closed up 230 points, or 0.4%, while the S&P 500 jumped 0.8%. The tech-heavy Nasdaq increased 1.3%.
The Dow had fallen as much as 750 points on Monday morning, before reversing those losses in the afternoon.
Oil prices fell into the red and stocks raced into the green after comments made by President Donald Trump to a CBS reporter, who posted on X that the president had said “the war is very complete, pretty much.”
Crude markets began to calm on Monday morning amid a meeting of the Group of Seven (G7) finance ministers about a possible coordinated release from their respective strategic petroleum reserves.
The G7 announced on Monday its decision to forego a release of reserve oil at this time, but traders appeared to view the group as willing to take such action.
Still, indexes fell worldwide on Monday as the jump in oil prices rippled through global markets. Tokyo’s Nikkei 225 index plunged 5.2%, while pan-European STOXX 600 index slipped 0.6%.
U.S. crude oil prices hovered at about $85 per barrel on Monday afternoon, which marked a roughly 6% decline from a day earlier. Since a month ago, however, oil prices have soared 34%.
In a social media post on Sunday night, President Donald Trump downplayed the rise in oil prices.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY!” Trump said.
Soon after the war with Iran began on Feb. 28, U.S.-Israeli forces killed Supreme Leader Ayatollah Ali Khamenei in Tehran. His son Mojtaba Khamenei was chosen on Sunday to succeed him.
