US-Iran Conflict Still a Wildcard for Global Inflation

The ongoing US-Iran conflict continues to impact global markets and inflation rates. Despite hopes for a less-volatile phase, the odds of a quick resolution remain low.

However, if the US-China war is transitioning towards a lower-intensity stage, this could help tame inflation in the months ahead, potentially limiting the number of Federal Reserve interest rate hikes.

The Middle East's oil and gas exports are expected to increase even with a durable peace emerging tomorrow, but market pricing would quickly reflect news of a winding-down of U.S.-Iran hostilities.