US equities opened lower as optimism about a swift resolution to the Iran war faded after the failure of negotiations over the weekend, pushing up oil prices and inflation expectations, while first-quarter earnings season kicked off with disappointing report from Goldman Sachs Group Inc.

Market sentiment soured as investors grappled with the prospect of a Hormuz blockade disrupting global oil supplies. The breakdown in diplomatic talks heightened fears of prolonged Middle East instability, driving crude futures higher and raising concerns about broader economic impacts. Energy sector stocks gained while broader market indices retreated.

Adding to the market pressure, Goldman Sachs delivered a disappointing earnings report that set a cautious tone for the quarterly results season. The investment bank's underperformance raised questions about the health of financial sector profits amid higher interest rates and economic uncertainty. Investors now await results from major banks and industrial companies to gauge the extent of economic slowdown concerns.