Special Market Update - Weathering the Strike 

The past two days have been the most intense of the Iran conflict. President Trump effectively deescalated his own escalation by extending his last-Friday ultimatum – that Iran reopen the Strait of Hormuz or face major economic damage via destroyed power plants – from 48 hours to the end of this week. In response, equity markets recovered most of last Friday’s significant drop as oil prices fell to $89/barrel (from $98/barrel last Friday). Trump’s Liberation Day II sequel appears to be a page right out of the Liberation Day I playbook – set high demands and negotiate to (his side of) the middle. We must be mindful of lingering economic damage from recently elevated oil prices, but the data suggests the U.S. economy can bunker down and survive.

Click to read: Special Market Update - Weathering the Strike