US stock market futures declined at the start of the trading week, with both S&P 500 and Nasdaq futures falling 0.1% amid rising geopolitical tensions in the Persian Gulf. The situation escalated after Iran rejected a US ceasefire proposal, demanding war reparations and sovereignty over the Strait of Hormuz. This rejection has led to increased uncertainty, with drone incidents reported in the region, raising concerns about shipping safety. The Strait of Hormuz is crucial for global oil trade, and any disruption can significantly impact energy prices. As oil prices rise, inflation fears grow, which can negatively affect stock markets by increasing business costs and interest rate risks. Analysts highlight three main factors influencing market reactions: oil supply risks, inflation risks, and geopolitical uncertainty. Investors are advised to stay cautious and monitor developments, as market volatility is expected to continue while tensions remain unresolved. Overall, if diplomatic efforts improve, markets may recover; however, ongoing conflicts could keep them under pressure.