Key insights
- Reports of Iran cutting communication with the US have led to a surge in oil prices. This geopolitical development introduces uncertainty into energy markets, potentially impacting inflation and consumer spending. While the direct impact on US equities may be limited, sustained higher energy costs could act as a headwind for economic growth and corporate earnings, suggesting a slightly bearish outlook.
Link (to Yahoo Finance).
Frankly, this doesn't surprise me in the least; although there has been talk of ongoing negotiations, I have no idea if those were face-to-face someplace, or just two strong-willed old men texting demands at each other.
For discussion: what does someone smarter than I am, think this week's actions and consequences will actually be?
(Example: I'm not smart enough to invest in oil or futures etc ... is anyone here really doing that? Howzit going for you?)