CNBC Markets: Oil Prices Climb on Iran Tensions, Bank Earnings Exceed Expectations

Tensions between the US and Iran escalated as the US announced the reinstatement of a blockade on Iranian ports and a 20% toll on cargo passing through the Strait of Hormuz, according to CNBC's market overview. Consequently, crude oil prices surged by more than 9%, impacting stock markets.

US Central Command stated its forces would resume the blockade starting at 4 p.m. ET on Tuesday. The International Maritime Organization (IMO) has indicated that there is no legal basis for such tolls. Despite the increased tensions, the Department of Energy confirmed that 8.5 million barrels of oil transited the Strait of Hormuz on Sunday.

Meanwhile, major US banks have kicked off earnings season with strong results. JPMorgan Chase, Bank of America, and Goldman Sachs reported revenues from equity trading and investment banking that exceeded forecasts. JPMorgan Chase CEO Jamie Dimon noted that all of the bank's major business segments achieved record revenues for the quarter. Bank of America CEO Brian Moynihan described the period as one of the bank's "strongest quarters to date."

Investors are also anticipating the release of the June consumer price index (CPI) on Wednesday morning, which is expected to show a 0.2% decrease month-over-month. Federal Reserve Chair Kevin Warsh is set to begin his two-day testimony before Congress, facing the House Committee on Financial Services. This marks Warsh's first congressional hearings since assuming the role of Fed chair in May.