U.S. seizes Iranian-flagged ship, Warsh's big week, Cursor funding and more in Morning Squawk

• The USS Spruance intercepted the Iranian vessel Touska, with U.S. Marines taking custody, coming just after Iran withdrew from second-round peace talks in Pakistan
• Kevin Warsh's Senate hearing will likely focus on his connections to tech figures like Peter Thiel and Marc Andreessen, making him potentially the closest Fed chair to Silicon Valley
• AI coding startup Cursor is in talks for a funding round valuing the company at over $50 million, with Andreessen Horowitz expected to co-lead the investment

Market Summary: U.S.-Iran Tensions Resurface, Warsh Confirmation Hearing Ahead

Key Developments:

U.S. stock futures fell as geopolitical tensions escalated after President Trump announced the seizure of Iranian-flagged cargo ship Touska in the Gulf of Oman. The USS Spruance intercepted the vessel attempting to bypass the U.S. naval blockade, with Marines now in custody of the ship. This development reverses last week's optimism that pushed indexes to all-time highs.

Iran withdrew from second-round peace talks in Pakistan shortly after the seizure. The Strait of Hormuz, briefly reopened Friday, was closed again by Saturday. Energy Secretary Chris Wright warned gas prices may remain elevated until next year, adding consumer cost pressures.

Federal Reserve Leadership:

Kevin Warsh, Trump's Fed Chair nominee, faces Senate confirmation hearings Tuesday. His extensive tech sector connections—including ties to Palantir CEO Alex Karp, Peter Thiel, and Marc Andreessen—would make him the closest Fed chair to Silicon Valley. Questions are expected regarding tech moguls' potential access to the Fed and how AI could influence monetary policy.

Corporate News:

• AI coding startup Cursor is in funding discussions valuing the company above $50 million, with Andreessen Horowitz co-leading and participation from Thrive Capital
• Auto dealership consolidation continues: top 150 dealers now control 27% of new vehicle sales (up from 21.2% a decade ago)
• Nvidia faces gamer backlash as it prioritizes AI chips over gaming products; data center business now represents over 90% of revenue

Market Calendar:

Key earnings reports this week include major technology and financial companies, alongside March retail sales data.