Stocks, Oil, and the Dollar Send Mixed Signals on U.S.-Iran War Impact

Financial markets have begun signaling differing views on both the impact of the U.S.-Iran war on the global economy and the length of time the two nations are expected to remain in conflict within the broader Gulf region. U.S. stocks have declined only marginally lower since trading closed last week, which came just hours before President Donald Trump ordered military strikes on Iran as part of Operation Epic Fury. Energy markets remain the linchpin of U.S. market angst with oil and gas supplies through the Strait of Hormuz, a conduit between the Indian Ocean and the Persian Gulf that handles around a fifth of the world’s crude each day, now largely at a standstill.