5 things to know before the stock market opens on Tuesday

President Donald Trump said yesterday that the United States would reinstate a blockade of Iranian ports and impose a 20% toll on cargo transiting the Strait of Hormuz. Oil prices soared more than 9% following the announcement, putting pressure on stock prices.

Here’s what you need to know:

U.S. Central Command announced that its troops would resume the blockade at 4 p.m. ET today. President Trump’s plan for a 20% strait toll comes after U.S. officials rejected Iran’s own plan to impose tolls on major shipping routes. The International Maritime Organization says such tolls have no legal basis. Despite the recent escalation in tensions, the Energy Department told CNBC on Sunday that 8.5 million barrels of oil had passed through the strait. Don’t miss Energy Secretary Chris Wright on CNBC’s “Closing Bell Overtime” at 4:30 PM ET. Watch live on CNBC or CNBC+. Yesterday, Brent crude oil posted its biggest single-day increase since 2020. International benchmarks and US crude oil are rising again this morning. Follow live market updates here.

Wall Street’s biggest banks started the earnings season on a strong note this morning, reporting better-than-expected stock trading profits and big increases in investment banking fees. See all five earnings reports here.

JP Morgan Chase CEO Jamie Dimon said each of the bank’s major businesses posted record profits in the quarter. bank of america CEO Brian Moynihan called it one of the bank’s “strongest quarters ever.” Hear more from Mr. Moynihan when he appears on CNBC’s “Squawk on the Street” this morning at 10 a.m. goldman sachs CEO David Solomon, 12pm ET.

Earnings aren’t the only thing traders are focused on this morning. The U.S. Bureau of Labor Statistics will release the consumer price index for June at 8:30 a.m. ET, and economists expect the index to decline 0.2% for the month. As a result, the 12-month interest rate will be 3.8%, down 0.4 percentage point from May.

Federal Reserve Chairman Kevin Warsh will also begin two days of hearings at the Capitol today. The newly sworn-in Fed chief will appear before the House Finance Committee at 10 a.m. this morning, then head to the Senate Baking Committee tomorrow. As CNBC’s Jeff Cox points out, this is the first such hearing since Warsh took over the Fed in May.

More than a dozen state attorneys general are suing to block it. paramount skydance‘s acquisition of warner bros discovery. As CNBC’s Lillian Rizzo reports, the group is asking the companies not to complete the deal until the judicial process is completed, citing antitrust concerns.

California Attorney General Rob Bonta, who is leading the lawsuit, said in a statement that the merger would harm “audiences on every couch and movie theater seat in America,” and warned that the partnership could result in less content and higher prices.

A Paramount spokesperson said the lawsuit “unfairly represents competition in today’s entertainment industry.” The agreement has already received approval from the Department of Justice and several global jurisdictions.

chipotle pepper We’re opening our first restaurant in Mexico this week. Based in the Monterrey metropolitan area, the fast-casual chain said it is targeting its position as one of the country’s “major business and innovation centers” and its growing population and economic strength.

As CNBC’s Raya Neelakandan points out, this is the beginning of Chipotle’s plans to expand into Mexico. The California-based chain plans to expand into the capital, Mexico City, next year.

CEO Scott Boatwright said in a statement that the company “enters Mexico with a deep respect for Mexico’s culinary traditions.” Chipotle already operates more than 4,000 stores around the world and is considering international expansion as part of a broader strategy to break through stagnant growth.

South Carolina Governor Henry McMaster on Monday selected Darling Graham Nordon to fill the Senate seat left vacant by the sudden death of his brother Lindsey Graham this weekend. Trump had recommended Graham Nordon for the position earlier in the day.

— CNBC’s Kevin Breuninger, Spencer Kimball, Brian Sullivan, Sean Conlon, Hugh Song, Leslie Picker, Jeff Cox, Lillian Rizzo, Raya Neelakandan and Justin Papp contributed to this report.

Luke Fountain helped produce this newsletter. Josephine Rozzelle edited this version.