US-Iran Peace Talks Collapse; Trump Orders Blockade of Strait of Hormuz

European equities are expected to open sharply lower on Monday following the collapse of peace talks between the United States and Iran in Islamabad. The failure to reach an agreement on Iran's nuclear program has prompted U.S. President Donald Trump to order a total naval blockade of all maritime traffic entering and exiting Iranian ports, effective immediately. The blockade of the Strait of Hormuz, a critical chokepoint for global oil supplies, has ignited fears of a prolonged conflict. While Iranian officials claim readiness to counter military action, the move signals a severe escalation in tensions. Disagreements persist over nuclear commitments, financial reparations, and ongoing military activity in Lebanon. The energy market reacted swiftly, with Brent crude prices jumping over 7% to exceed $102 per barrel. In the broader macro environment, U.S. consumer sentiment has hit a record low for April, while March headline inflation rose 3.3% year-on-year, the highest level in nearly two years. Financial markets are showing signs of stress, with Asian indices trading lower and global bond yields surging on inflation concerns. Investors are now balancing these geopolitical risks against the start of the first-quarter earnings season, which will see reports from major financial institutions including JPMorgan Chase, Goldman Sachs, and Morgan Stanley this week.