US stocks end lower as oil jumps on Iran uncertainty, chipmakers slide

• European markets close mixed as investors monitor US-Iran developments

US stocks closed mostly lower on Monday as oil prices surged amid uncertainty over the conflict with Iran and semiconductor shares came under pressure.

The Dow Jones Industrial Average fell 0.11%, or 60.95 points, to end the day at 53,975.98.

The S&P 500 slipped 0.06, or 4.53 points, to 7,753.11, and the Nasdaq Composite lost 0.32%, or 85.26 points, to 26,605.36.

Intel dropped over 4% after the chipmaker announced plans for a $15 billion common stock offering. Nvidia lost 2.8%, and Apple fell 1.5%.

Oil prices climbed sharply as doubts grew over a near-term agreement to reopen the Strait of Hormuz.

US benchmark West Texas Intermediate crude settled 5.1% higher at $82.2 per barrel, while international benchmark Brent rose 5% to $87.7.

Iran has said it is nearing an agreement with Oman on reopening the strategic waterway but continues to reject direct negotiations with Washington until several conditions are met.

US President Donald Trump said Sunday that Washington was “only semi-negotiating” with Tehran and wanted Iran to remain under economic pressure.

US crude inventories in the Strategic Petroleum Reserve also fell by about 6.1 million barrels last week to 298.7 million barrels, their lowest level since January 1983.

The three major US indexes were coming off their strongest weekly gains since April, with the S&P 500 ending last week at a record closing high.

Friday’s data showing an unexpected contraction in US nonfarm payrolls in July reduced expectations of an interest rate hike by the Federal Reserve in September.

European stocks close mixed

European stock markets ended Monday’s session with a mixed performance as investors focused on uncertainty surrounding diplomatic efforts between the US and Iran.

The STOXX Europe 600 edged up 0.03% to 660.45 points.

France’s CAC 40 rose 0.13% to 8,726.03, while Germany’s DAX 40 added 0.02% to finish at 26,323.88.

On the other hand, Britain’s FTSE 100 declined 0.35% to 10,862.5, Italy’s FTSE MIB fell 0.1% to 53,663.88, and Spain's IBEX decreased 0.1% to 20,173.