Key Takeaways

• Futures slip: Dow futures fell 213 points (-0.4%), S&P 500 futures dropped 0.2%, and Nasdaq 100 futures slid 0.1% as Hormuz tensions flared.
• Iran turns away warships: Iran’s navy claimed it repelled enemy warships in the Strait of Hormuz with a “swift and decisive warning,” per Reuters citing Iranian state TV.
• CENTCOM denies hits: U.S. Central Command confirmed no U.S. navy ships were struck.
• Tehran ready for “any scenario”: An unnamed source told Tasnim that Iran has prepared multiple scenarios beyond firing at warships.
• “Project Freedom” launches: Trump unveiled the operation over the weekend to reopen Hormuz, though details remain scarce.
• Mine danger flagged: The Joint Maritime Information Center warned of unsurveyed naval mines in traditional shipping routes.
• Oil surges: Brent crude jumped back above $110 per barrel; the dollar strengthened while gold declined.
• GameStop’s bombshell: The retailer made an unsolicited $56 billion bid for eBay at $125 per share — a 20% premium — sending eBay stock up over 8%.
• Berkshire’s first quarter under Abel: Q1 operating earnings rose 18%, but the cash pile swelled to a record $397.38 billion.
• Earnings ahead: Palantir reports after the bell, with AMD, Super Micro Computer, and Disney also on tap this week.
• Jobs data looms: Friday’s April U.S. employment report is the week’s biggest release.

U.S. stock futures wavered on Tuesday, sinking below the flatline, after fresh tensions appeared to flare between the United States and Iran in the Strait of Hormuz.

By 07:32 ET (11:32 GMT), the Dow futures contract had fallen 213 points, or 0.4%, S&P 500 futures had dropped 13 points, or 0.2%, and Nasdaq 100 futures had slid 24 points, or 0.1%.

Hormuz Standoff Reignites

Iran’s navy claimed it had turned away enemy warships attempting to traverse the Strait of Hormuz following a “swift and decisive warning,” Reuters reported on Monday, citing Iranian state television.

Reuters was unable to immediately verify the reports, while U.S. Central Command stated that no U.S. navy ships had been struck.

Tehran is ready for any possible scenario and will not be bullied by the United States, an unnamed source told Iran’s Tasnim news agency, according to Reuters. Tasnim added that beyond firing in the direction of U.S. warships, Tehran had prepared additional scenarios it stands ready to activate if necessary.

Earlier, Iran’s military had issued warnings to U.S. forces not to enter the Strait of Hormuz, following President Donald Trump’s claim that the United States would begin to “guide” out vessels stranded by the effective closure of the narrow waterway. Any commercial vessels should also refrain from making movements without approval from Tehran’s armed forces, Iran’s military added.

Over the weekend, Trump unveiled what he called “Project Freedom,” a push to help reopen stalled shipping traffic through the strait — a vital conduit for a fifth of the world’s oil. Trump provided few details around the plan.

On Monday, the Associated Press reported that the U.S.-led Joint Maritime Information Center had established an “enhanced security area” south of traditional shipping routes. Typical routes through the strait are considered “extremely hazardous” due to the presence of naval mines that “have not been fully surveyed and mitigated,” the center said, according to the AP.

Against this backdrop, Brent crude futures — the global oil benchmark — jumped back above $110 a barrel. Concerns have continued to swirl around the impact that crude costs, now well above pre-war levels, will have on inflation in countries around the world.

The U.S. dollar strengthened, while gold prices declined.

GameStop’s Surprise eBay Bid

In individual stocks, shares of GameStop were lower in premarket trading after the videogame retailer made an unsolicited offer to buy e-commerce player eBay for roughly $56 billion.

GameStop offered $125 a share in cash and stock for eBay — about a 20% premium to the company’s closing price on Friday.

About half of the offer would be in cash, while the remainder would be in GameStop stock, the firm said in a statement. Shares of eBay spiked by more than 8% before the start of U.S. trading.

GameStop also disclosed that it had built a roughly 5% stake in eBay. The company said it would fund the proposed acquisition through a combination of cash and debt, having received a $20 billion debt commitment from TD Securities.

Berkshire’s First Quarter Under Abel

Meanwhile, Berkshire Hathaway posted an 18% rise in first-quarter operating earnings in the inaugural results under new chief executive Greg Abel, who took the reins from Warren Buffett at the start of the year.

The company’s cash pile swelled to a record $397.38 billion, reflecting the conglomerate’s continued difficulty finding acquisitions that meet its value-oriented standards.

“Berkshire was one of the last major [calendar first-quarter] reports and while the numbers were fine, the bigger issue for the stock remains the company’s extreme amount of cash and management’s disdain for deployment options at the present time,” analysts at Vital Knowledge wrote in a note.

Earnings and Data on Deck

Elsewhere, on the earnings front, investors will be keeping tabs on results from data analytics and defense group Palantir after the bell. Other key returns this week are due from names including Advanced Micro Devices, Super Micro Computer, and Walt Disney.

Critical upcoming economic data will also be in focus, with Friday’s U.S. employment report for April likely the biggest release of the week.