Stocks Extend Gains as Crude Oil Drops on Iran: Markets Wrap The global markets' jubilation over the potential reopening of the Strait of Hormuz is a classic case of short term thinking in action.
As crude oil prices dropped in response to rumors of a US Iran deal, stocks surged to record highs, seemingly oblivious to the underlying tensions that continue to simmer beneath the surface.
Historically, similar crises have led to massive spikes in oil prices and sent shockwaves through the global economy. The 1973 Arab Israeli War is a stark reminder of this risk.