Summary：**US Stocks Drop Sharply as Oil Prices Spike Amid Rising Iran Tensions****Introduction** U.S. equit

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**US Stocks Drop Sharply as Oil Prices Spike Amid Rising Iran Tensions**

**Introduction**
U.S. equity markets slipped on Thursday as crude oil jumped more than 4% after fresh hostilities between the United States and Iran flared in the Strait of Hormuz. The S&P 500 fell 1.2%, the Dow Jones Industrial Average lost 0.9%, and the Nasdaq Composite retreated 1.4%. Investors reacted to the dual shock of higher energy costs and renewed geopolitical risk, which together threaten to push inflation back toward the Federal Reserve’s 2% target and could force a more aggressive monetary‑policy stance.

**Key Developments**
Oil benchmarks reacted sharply after Iran’s Revolutionary Guard announced it had seized a foreign‑flagged tanker allegedly carrying sanctioned goods, prompting the U.S. Navy to increase patrols in the region. West Texas Intermediate (WTI) crude rose to $87.30 a barrel, its highest level since early April, while Brent climbed past $90. The spike lifted energy‑heavy sectors, with ExxonMobil and Chevron gaining over 2% each, but dragged down broader indices as higher fuel prices raised concerns about consumer spending and corporate margins. Simultaneously, Treasury yields edged upward, reflecting expectations that the Fed may need to maintain higher rates longer to contain inflationary pressure.

**Industry Analysis**
Analysts note that the oil surge adds to existing inflationary pressures from supply‑chain bottlenecks and wage growth. “When energy prices rise