Strait of Tensions: The Unlikely Dance of Markets and Geopolitics The markets' nonchalance in response to President Donald Trump's announcement about a US Iran interim deal opening the Strait of Hormuz is striking, given its strategic importance.
Closure would severely impact global oil supplies. Crude oil prices and Treasury yields have plummeted in recent weeks, providing some respite from last week's volatility.
This could be seen as a vote of confidence in Secretary of State Mike Pompeo's negotiating skills or simply a sign that investors prioritize short term gains over long term security.