Good morning. The Islamabad talks are done and it didn’t go well. After 21 hours at the table, Vance walked away, and Trump responded by announcing a US naval blockade of the Strait of Hormuz starting today at 10 a.m. ET. Markets are adjusting accordingly.

Oil ripped overnight. Brent crude is at $102.26, WTI at $96.57. Both spiked harder initially on Sunday before pulling back as CENTCOM clarified the blockade only targets Iranian port traffic, not all Hormuz transit. That distinction matters, but one-fifth of global oil supply flows through that strait. The market is pricing in disruption risk and it shows.

Europe opened red. The Stoxx 600 is down 0.7%, with travel and leisure getting hammered. Wizz Air down nearly 7%, Lufthansa off 3.9%, EasyJet sliding 3.8%. Jet fuel supply fears. The DAX closed Friday at 23,804 and is tracking lower this morning.

US futures are off their overnight lows but still down. Dow futures off about 256 points, S&P futures down 0.55%, Nasdaq futures down 0.6%. Friday’s close: S&P at 6,816.89, Dow at 47,917, Nasdaq at 22,903. Not a great setup for the open.

Asia sold off across the board. Nikkei down 1.09%, Hang Seng off 1.22%, Kospi down 1.26%. Mainland China barely moved. Different exposure, same direction.

Bitcoin dropped to $70,807, down about 2.6% as risk-off spread. ETH at $2,185. And then there’s gold, actually slipping to $4,718 as crude surges. Money rotating into energy plays instead of the usual safe haven bid. Not what you’d normally expect.

Existing home sales data drops at 10 a.m. ET. Bank earnings kick off tomorrow with JPM, Citi, Wells Fargo and BlackRock. But today belongs to Hormuz.

One story is running the tape this morning. Everything else is noise.