US-Iran Tensions Escalate Following Tanker Seizure in Strait of Hormuz

US equity futures declined following reports that US forces seized an Iranian tanker in the Strait of Hormuz, reigniting fears of a direct confrontation between Washington and Tehran. The incident has immediately shifted market sentiment toward a risk-off posture. The Strait of Hormuz serves as the world's most critical oil transit chokepoint, with a significant portion of global petroleum supplies passing through the narrow waterway. Any instability in this region typically prompts immediate volatility in energy prices and broader financial markets due to the strategic importance of the route. In response to the escalation, futures for the S&P 500, Nasdaq, and Dow Jones Industrial Average all traded lower. Traders are pricing in the possibility of increased geopolitical friction and the potential for a supply-side shock to the global oil market. Market participants are now closely monitoring for a response from Tehran and further directives from the US administration to determine if the incident will escalate into a broader regional conflict or remain a localized maritime dispute.