Iran War Sparks Oil Price Surge, Inflation Fears

Three months into the Iran war, oil prices have skyrocketed by nearly 40%, causing policymakers to worry about renewed inflation fears and interest rate hikes.

The impact of the conflict has been mixed. On one hand, it's boosted other assets like oil, making the dollar a safe-haven. On the other hand, it's hurt currencies in Asian countries that rely heavily on imported energy.

Global stocks have held up relatively well, with U.S. stocks at record highs and European shares near all-time highs, thanks to renewed AI optimism and hopes for a peace deal.

However, not all sectors are faring as well. The S&P 500 passenger airlines index has dropped over 6% since the conflict began due to global flight disruptions.