U.S. markets are pointing to a mixed open as oil prices climb due to a seeming stalemate over the Strait of Hormuz. Futures for the S&P rose 0.2% Monday, while futures for the Dow Jones Industrial Average fell 0.14%. Nasdaq futures gained 0.14% before the opening bell. Iran has insisted that the U.S. meet its demands in negotiations before the Strait of Hormuz reopens. Inflation will be the focus this week in the U.S. with new data from July landing midweek. In U.S. markets before the opening bell, the energy sector is rising in tandem with the price of oil. Marathon, Occidental and Valero were the biggest gainers.

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Israel’s prime minister is rejecting President Donald Trump’s announced deal for Gaza and says Israeli forces won’t withdraw from the Palestinian territory until Hamas disarms. Meanwhile, more details are emerging on Iran and Oman’s deal to manage the Strait of Hormuz, but Tehran suggests that vessels linked to “hostile countries” will be barred. Iran also has changed its top security post. Elsewhere, Yemen’s Iranian-backed Houthi rebels have targeted a crucial Yemeni government-held port on the Red Sea and attacked an oil facility in Saudi Arabia. A Houthi spokesperson says Sunday's attacks were in response to Saudi drones breaching Yemen’s airspace.

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Iran has issued dramatic new demands around the reopening of the Strait of Hormuz. Oman says talks to manage the strait between it and Iran are continuing. Meanwhile, the United Arab Emirates said on Saturday that an Iranian missile targeted one of its ships that's owned by Abu Dhabi’s state-run ADNOC oil company. No casualties were reported. Elsewhere in the region, Yemen’s military attacked the country's Iranian-backed Houthi rebels in response to the strikes, escalating tensions and threatening to reignite the civil war. And Turkey's foreign minister gave new details on a defense agreement with Saudi Arabia and Pakistan.

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Iran's leaders believe that sooner or later the United States will have to accede to their control over the Strait of Hormuz. That would mark a victory in the five-month war, as the critical waterway carries a fifth of the world's traded oil and gas in peacetime. But Iran's strategy also carries major risks. A prolonged conflict could inflict further damage on Iran's economy and infrastructure, potentially triggering another wave of internal unrest. In the meantime, the conflict over the strait makes it difficult to wind down the wider war, much less resume negotiations over Iran's disputed nuclear program.

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Republican Sen. Bill Cassidy says he’ll back Todd Blanche’s nomination as attorney general, likely paving the way for Blanche to be confirmed to lead President Donald Trump’s Justice Department. Blanche’s prospective confirmation appeared threatened earlier Friday, when Republican Sen. Lisa Murkowski announced her opposition. Murkowski cited concern that the administration could proceed with a $1.8 billion fund to compensate Trump allies, despite Blanche formally terminating it. Also, an appeals court has ruled Trump must seek approval from Congress to build his proposed White House ballroom, saying construction must stop. The U.S. Court of Appeals sided with historic preservationists who sued to stop construction.

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Pakistan, Turkey and Saudi Arabia have signed a mutual defense agreement. The deal means an armed attack on one is considered an attack on all. It was signed Friday during a meeting in Saudi Arabia. The agreement aims to strengthen collective deterrence against aggression. Meanwhile, Iran-backed Houthi rebels have increased attacks on Saudi-linked targets. They were blamed for an attack in Marib province in Yemen and struck the Najran region in Saudi Arabia on Thursday. The attacks have escalated tensions since a 2022 truce. Separately, an Israeli strike wounded a Lebanese soldier in the village of Mansouri. Here’s a look at the latest developments across the Middle East.

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The Senate has approved a punishing Russian sanctions bill that was a top priority for the late Sen. Lindsey Graham. Passage of the package Friday signals renewed bipartisan support for Ukraine as the war drags on. The legislation would penalize countries that continue to buy Russian oil, gas and other exports. It comes after Ukrainian President Volodymyr Zelenskyy visited the Capitol late last month and watched from the gallery as the Senate took the first procedural votes on the legislation. The legislation allows the president to impose tariffs on the world’s top five purchasers of Russian oil or natural gas, including China and India. The package next goes to the House, but some Democrats have concern it gives Trump too much tariff authority.

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Water levels on the Danube River have dropped so low due to drought that World War II German battleships are emerging into view. The Danube’s record levels also have forced power plants to the brink of shutting down, and governments across Central and Eastern Europe are taking steps to conserve electricity. The emerging ships belonged to Nazi Germany’s Black Sea fleet, deliberately sunk in 1944 to slow the Soviet advance in the final months of the war. Authorities are now trying to keep traffic flowing on the Danube as the dropping water levels create dangerous conditions.

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President Donald Trump has been highlighting his economic achievements, pointing to record stock market highs and claims of increased hiring, manufacturing, and investment. Some claims are true, while others are exaggerated or unclear. Ahead of the November 3 midterms, voters are frustrated with the economy and high living costs. An AP-NORC poll in late July showed only 32% of U.S. adults approved of Trump’s handling of the economy. Meanwhile, 69% described the economy as “poor,” with many citing the cost of essentials like groceries and gas as major stressors.

A new study calculates that human-caused climate change doubled the likelihood of the tinderbox weather conditions that sparked Canada’s massive summer wildfires. Thursday’s study by extreme weather research group World Weather Attribution says greenhouse gases make fire weather conditions such as heat, dry air and wind two times more common than they would be in a world without climate change. The fires spread smoke and raised the ire of U.S. President Donald Trump. He blames Canada for not managing its forest properly. Experts say Trump should look in the mirror. One Canadian fire scientist faulted the U.S. and Canada for not cutting back enough on fossil fuels and said the consequences could be deadly.