While markets cheered the Islamic Republic's announcement to reopen the Strait of Hormuz during the final session of last week, this morning's decline is attributed to its subsequent closure. The Iranians quickly reversed their position, claiming that the United States had violated the ceasefire.

According to Donald Trump, the U.S. Navy fired upon and halted an Iranian-flagged cargo ship attempting to breach the blockade. The U.S. President also indicated that a delegation was traveling to Islamabad, Pakistan, for negotiations. Meanwhile, Iranian state television reportedly clarified that Tehran "currently has no plans to participate in the next round of talks." The country's news agency, IRNA, added that "reports circulating regarding a second round of negotiations in Islamabad are false" and that "information published by the United States is part of their propaganda campaign and a 'blame game' aimed at pressuring Iran."

The tone of exchanges between the two parties has therefore seen little improvement, with each side accusing the other of failing to respect the ceasefire.

Regarding market impact, beyond the retreat in indices, crude oil prices are rebounding. In New York, WTI is up 4.77% at 89.01 dollars, while in London, North Sea Brent has advanced 3.77% to 95.44 dollars.

Consequently, oil stocks are in the green, benefiting from the disruption in crude deliveries. TotalEnergies, for instance, posted the best performance on the CAC 40 with a gain of 2.48%. Elsewhere in Europe, Eni climbed 2.96%, and Var Energi advanced 4.46%.

Conversely, airline groups, which are major kerosene consumers, are in the red. Air France-KLM is down 3.66%, easyJet has retreated 3.65%, and Lufthansa has shed 4.19%.

On the currency market, the euro is edging up slightly against the greenback (+0.17%) and is trading at 1.1758 dollars.

On the macroeconomic front, no major statistics are scheduled for today, but the remainder of the week will be significantly busier. Starting Tuesday, highlights include the ZEW German economic sentiment index and U.S. retail sales for March, followed on Thursday by preliminary April private sector activity data from across the globe.

The week will also be marked by Kevin Warsh's Senate hearing in the United States on Tuesday. He is slated to succeed Jerome Powell as head of the U.S. Federal Reserve.

Finally, the pace of corporate quarterly earnings releases is set to intensify, featuring, among others: Thales, Beiersdorf, United Airlines, Boston Scientific, Intel, SAP, American Express, Lockheed Martin, Sanofi, Orange, STMicroelectronics, and Eni.