U.S.-Iran Tensions Escalate as Stock Markets React to Naval Conflict Stock futures declined on Monday as tensions between the U.S. and Iran intensified following the weekend seizure of an Iranian-flagged cargo ship in the Gulf of Oman. The Dow Jones Industrial Average futures dropped 258 points, or 0.5%, while S&P 500 and Nasdaq-100 futures also fell by 0.5% and 0.4%, respectively. The developments came amid a broader geopolitical standoff, with the U.S. and Iran locked in a dispute over the Strait of Hormuz, a critical shipping lane. President Donald Trump claimed the U.S. had seized the Iranian vessel, which was under Treasury sanctions due to its history of illegal activity. “We have full custody of the ship, and are seeing what’s on board,” Trump stated in a Truth Social post. He also warned of potential military action, threatening to destroy Iran’s power plants and bridges if the country did not agree to U.S. demands. A ceasefire between the two nations, which had been in place since earlier in the month, was set to expire by the end of the week. The conflict’s escalation sent crude oil prices surging. West Texas Intermediate futures rose 6% to over $88 per barrel, while Brent crude climbed 6% to above $95 per barrel. Analysts noted that the situation added uncertainty to global markets, which had previously been buoyed by hopes of a U.S.-Iran peace deal. Wall Street had enjoyed a strong week, with the S&P 500 and Nasdaq Composite hitting all-time highs after the initial ceasefire. However, the renewed tensions cast a shadow over investor sentiment. Peter Boockvar, chief investment officer at OnePoint BFG Wealth Partners, warned that the market was “overbought” on short-term optimism, and the conflict’s unresolved nature could trigger a pullback. U.S.#us #iran #dow_jones_industrial_average #strait_of_hormuz #gulf_of_oman
