00:00and ongoing worries of economic stagflation.
00:04All three major U.S. stock indexes closed lower to mix to snap an earlier rally
00:11as U.S. President Donald Trump reacted to reports that Iran was deploying mines
00:16in the crucial streets of Hormuz, with threats of retaliation
00:20and renewed calls for Iran's total surrender.
00:25The indexes wivered through early session trepidation
00:28as U.S. Defense Secretary Pete Hexeth warned that the U.S. would be the most intense day
00:33thus far of strikes against Iran.
00:36The conflict has sparked a jump in crude prices,
00:38which has fueled worries over inflation against the backdrop of weakening labor market,
00:43a toxic combination of rising costs and softening economy called stagflation.
00:48But the market remained hopeful that a near-term resolution could be reached,
00:52despite an announcement by Iran's revolutionary guards
00:54that the country would not allow any oil to leave the Middle East until U.S.-Israeli attacks ceased,
01:00which prompted threats from Trump that he would strike back 20 times harder if they blocked crude exports.
01:06The last 12 hours in equity markets has really been driven by all the news and perceptions of news
01:13of what's happening in the Middle East.
01:15So when the president came out and said that the war will be over very soon,
01:20that gave a lot of confidence to market investors,
01:24set the price of oil down, which certainly has supported equity prices, has impacted bonds.
01:31Really, the entire complex is driven by what is happening in the Middle East right now,
01:36more than any other news out there.
01:37In addition to Trump's prediction of a prompt de-escalation of the Iran war,
01:42his administration indicated a potential willingness to end all sanctions against Russia,
01:47which eased upward pressure on oil prices,
01:50while also raising the possibility of progress toward ending Russia's war on Ukraine.
01:54Energy Secretary Chris Roy announced on Tuesday
01:57that the U.S. Navy had successfully escorted an oil tanker through the Strait of Hormuz
02:02and offered assurance that oil continues to move to the global marketplace.
02:06U.S. and Brent front-month crude futures settled down over 11 percent.
Comments