Rising tensions in the Middle East can threaten global energy supply. Conflicts in the region often involve key oil producers or infrastructure like refineries, pipelines, and shipping lanes. Disruptions can lead to short-term spikes in oil prices, and in past decades, prolonged events were sometimes enough to spark broader economic slowdowns. But today, the global economy, especially the U.S. economy, is more resilient.
An important function of competitive markets is driving prices to equilibrium.
When markets feel as shaky as they do now in the US, it is normal to ask: Is this time different?
Here's our take on what is happening in the markets currently.
Stocks and bonds have rewarded investors who can look past the headlines and remain disciplined over the long term.
President Trump unveiled his plan to impose baseline, and in some cases, reciprocal tariffs on all imported goods to the United States. The tariff rates were more aggressive than most investors expected, causing an abrupt response from the markets.