U.S. stocks ended lower on Monday as renewed tensions in the Middle East rattled investors and a competitive shift in the shipping industry weighed heavily on the broader market.

The Dow Jones Industrial Average fell by 557.37 points, or 1.13 percent, to 48,941.90. The S&P 500 sank 29.37 points, or 0.41 percent, to 7,200.75. The Nasdaq Composite Index shed 46.64 points, or 0.19 percent, to 25,067.80.

Ten of the 11 primary S&P 500 sectors ended in the red, with materials and industrials leading the laggards by losing 1.57 percent and 1.17 percent, respectively. Meanwhile, energy bucked the trend by rising 0.85 percent.

Markets slid into negative territory following reports that two Iranian strikes hit a U.S. patrol boat and a U.S. warship was forced to turn back in the Strait of Hormuz.

While the United States officially denied the reports from Iranian media outlets, geopolitical anxieties worsened after the United Arab Emirates reported that both an oil tanker operated by the Abu Dhabi National Oil Company and the Fujairah export terminal had been struck.

The renewed regional hostilities triggered a sharp rally in oil prices. West Texas Intermediate crude for June delivery gained 4.48 U.S. dollars, or 4.39 percent, to settle at 106.42 dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery went up 6.27 dollars, or 5.8 percent, to close at 114.44 dollars a barrel on the London ICE Futures Exchange.

On the macroeconomic front, U.S. factory orders for March came in higher than expected, largely spurred by soaring demand for electronic components that underpin artificial intelligence technology. According to data released by the Commerce Department on Monday, factory orders rose 1.5 percent for the month, marking the largest increase since November.

In corporate developments, the logistics sector emerged as a major sore spot after Amazon announced plans to open its proprietary freight, distribution, fulfillment, and parcel shipping network to outside businesses. The move sent shockwaves through the shipping industry, causing GXO Logistics to drop 17.7 percent, while UPS and FedEx declined 10.47 percent and 9.11 percent, respectively.

Looking ahead, Wall Street is bracing for a busy week of corporate earnings, highlighted by results from major semiconductor manufacturers such as Lattice Semiconductor, Advanced Micro Devices, and Arm Holdings. Investors are also closely anticipating reports from Palantir and Paramount Skydance later in the week.