Iran dragging its feet

The prolonged conflict in Iran is keeping energy markets on edge, with the Strait of Hormuz remaining a key source of supply risk for oil and gas prices. Higher fuel costs have already pushed inflation back up, pressured real wages, and made it harder for the Federal Reserve to justify rate cuts in the near term.

Equities have largely recovered from their initial selloff, but that resilience could fade if the war drags on and inflation stays sticky. Bond markets are sending a more cautious signal, with Treasury yields rising as investors price in slower policy easing and persistent uncertainty.

For investors and advisors, the main risks are renewed volatility in energy-sensitive sectors, weaker consumer spending power, and tighter financial conditions. The opportunity lies in staying disciplined toward quality assets while recognizing that any breakthrough in negotiations could quickly ease pressure across markets.