Tariffs and Oil Shock Drive Market Shift as US–Iran Conflict Lifts Oil and Yields
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Key Points:
- Tariffs and the oil shock are driving a shift in global markets as rising costs and policy uncertainty pressure equities.
- US–Iran tensions are pushing oil prices higher, increasing inflation risks and supporting stronger yields and the US dollar.
- Markets are facing both inflation and recession risks at the same time, leading to higher volatility across equities, currencies and bonds.
Global markets are entering a new stage of uncertainty with trade tensions resurfacing under US President Donald Trump and geopolitical tensions in the Middle East on the rise. Trade tariffs, court decisions and oil shocks are recalibrating inflation, growth and investment flows. This is leading to extreme volatility in stock, bond and currency markets as investors reassess risks in dynamic macro environment.