Muted Market Response So Far to the Newest Chapter in the Iran Conflict (Including Oil)
Markets unfazed despite escalating geopolitical tension…
Highlights
• Markets unfazed despite escalating geopolitical tension…
• … while the tariff file and the Big Beautiful Bill have taken a back seat
• Powell’s “solid growth” claim hasn’t held up well
• The Iranian conflict poses near-term upside risks to U.S. inflation
Key Takeaways
• Trump Shakes Middle East, Markets Shrug: Well, so far so good — and now the term TACO can be placed on the back burner. Donald Trump followed through as the last chapters of the Ayatollah terror regime in Tehran are written and the map of the Middle East gets reshaped (not to mention sending a signal to China and Russia). Iran has been exposed as a paper tiger with only oil and nuclear ambitions as the power bases for the mullahs. In the overnight trade, despite heightened tensions in the Middle East, U.S. equity futures have clawed back from red to slightly in the green.
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