Geopolitical Tensions in Strait of Hormuz Push Oil Above $100, Weigh on US Indices

US equity futures are trending lower as global markets react to heightened geopolitical instability in the Middle East. The Dow, S&P 500, and Nasdaq futures all showed declines in early trading, reflecting investor anxiety over energy security and regional stability. The primary driver of the market volatility is the escalating struggle for control of the Strait of Hormuz between the United States and Iran. As one of the world's most critical oil transit chokepoints, any disruption in this region has immediate and severe implications for global energy costs and supply chains. Crude oil prices have surged, breaking the $100 per barrel threshold. This spike in energy costs typically acts as a drag on global economic growth and fuels inflationary pressures, contributing to the broad slide in US market indices. Adding to the bearish sentiment, Tesla shares faced downward pressure. The electric vehicle manufacturer issued warnings regarding its capital expenditure plans, leading investors to reassess short-term margins and growth trajectories. The combination of a systemic energy shock and weakness in a mega-cap tech leader has created a risk-off environment. Traders are closely monitoring the situation in the Persian Gulf for signs of further escalation or diplomatic resolution.