Key insights
- The extension of the ceasefire between the US and Iran has not resolved underlying tensions. Iran's continued closure of the Strait of Hormuz is expected to keep oil prices elevated. High oil prices may negatively impact the US stock market due to inflationary pressures and reduced consumer spending.
While Trump again extended the ceasefire, it doesn't solve anything. The US will keep up it's blockade and Iran will keep the Straith of Hormuz closed and now the pressure is off Iran to come to the table soon meaning oil prices will stay high and probably move higher.
Does anybody think Trump's ceasefire is just a distraction and he will do a surprise attack? But if he doesn't, I think we will be stuck over this for months.
If oil prices will stay high, the stock market most of the times moves lower.
Trump really need to come up with a strategy that works cause his tacos are getting too predictable. Iran already back to posting Lego memes. 🙄