The US dollar strengthened and oil prices jumped on Monday after US strikes on Iran heightened geopolitical tensions.
While markets have remained relatively calm so far—with the S&P 500 only 3% below its all-time high—investors are watching closely for Iran’s response.
The biggest concern is whether Iran might block the Strait of Hormuz, a critical oil shipping route, which could significantly impact global energy supplies and prices.
Despite the tension, some market watchers believe any downturn may be limited since investors have already been preparing for potential escalation.