Dow futures drop and oil jumps as first day of U.S.-Iran talks sees Trump threaten Tehran on Hormuz: ‘You close it and you won’t have a country’

U.S. stock futures fell and oil prices rose after peace talks between the U.S. and Iran got off to a rocky start on Sunday, with President Donald Trump wasting no time with threats to renew war.

Futures tied to the Dow Jones industrial average fell 191 points, or 0.37%. S&P 500 futures were down 0.52%, and Nasdaq futures lost 0.74%.

U.S. oil futures rose 2.1% to $78.19 a barrel, while Brent crude climbed 1.2% to $81.53. Gold dropped 1.5% to $4,180.40 per ounce.

Earlier in Switzerland, Vice President JD Vance said both sides had already made “great progress” in talks, saying the U.S. side represented an “outstretched hand” toward the people of Iran.

But after Iran said Saturday that it’s closing the Strait of Hormuz again as Israel continues attacking Hezbollah positions in Lebanon, Trump told Fox News on Sunday he spoke with Iranian officials and warned them, “You close it and you won’t have a country. You won’t even make it back to your f–king country.”

He also said the U.S. may take over the strait, adding “I’ll blow the s–t out of them. If they don’t make a deal, we’ll collect tolls.”

Last weekend, Trump and Iranian officials confirmed they agreed on a memorandum of understanding that reopens the strait, ends the U.S. naval blockade, and begins a 60-day period for both sides to...