US stocks opened largely flat on Monday as investors weighed uncertainty over a potential US-Iran resolution and awaited clarity on the Strait of Hormuz.
The S&P 500 was little changed, while the Nasdaq Composite slipped 0.25%. The Dow Jones Industrial Average fell 66 points, or 0.12%, in early trade.
At 9:34 a.m. EDT, the S&P 500 was at 7,753.42, down 4.22 points, while the Nasdaq stood at 26,625.043, lower by 65.572 points. The Dow was at 53,970.44, down 66.49 points.
Intel was among the biggest drags on the Nasdaq, with the stock falling about 3% after the chipmaker announced plans to offer $15 billion in common stock.
Market sentiment remained cautious as Iran indicated it was nearing a deal with Oman to reopen the Strait of Hormuz, while continuing to resist direct negotiations with Washington.
Iranian Foreign Minister Abbas Araghchi said there was "no possibility of restarting negotiations" as long as the US continued to violate the June memorandum of understanding and failed to compensate for what Tehran described as those "violations", according to Tasnim News Agency.
Oil prices rose amid uncertainty over the situation. US West Texas Intermediate crude futures gained about 1% to around $79 a barrel, while Brent crude futures rose 1% to roughly $84 a barrel.
Expectations of a near-term Hormuz deal have also shifted. Treasury Secretary Scott Bessent had indicated last week that an agreement could be imminent. However, President Donald Trump told Axios on Sunday that the US was only semi-negotiating with Iran and wanted Tehran to feel economic pressure.
The three major US indexes are coming off their strongest weekly performance since April, with the S&P 500 ending last week at a record closing high.
Stocks received a boost on Friday after July nonfarm payrolls unexpectedly contracted, raising hopes that the Federal Reserve could refrain from raising interest rates.
According to CME's FedWatch tool, traders now see a nearly 46% probability of a Fed rate hike at the September meeting, down from 67% a week earlier.
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