Markets react calmly to Iran conflict, but prolonged hostilities could worsen slump

Financial markets show a subdued reaction to the US-Israeli assault on Iran, despite the closure of the Strait of Hormuz. Oil prices have risen, but not as dramatically as in past conflicts, and gold prices have fallen. The US dollar strengthened slightly, and bond yields increased due to safety concerns and inflation expectations. Investors appear to believe the conflict will be short-lived, with President Trump taking steps to ensure the free flow of energy, potentially mitigating market shocks.