The U.S. and Iran have agreed to a peace deal that is expected to be signed later this week. While it would be prudent to keep fingers crossed given the long history of conflicts in the region and the mutual suspicion between the two warring sides, for now, markets are taking a sigh of relief. Beyond the human cost of the war, the conflict choked global supply lines, particularly oil and gas passing through the Strait of Hormuz, pushing energy prices higher.
Rising energy prices, in turn, pushed up inflation. Stateside, May consumer price index (CPI) rose at an annualized pace of 4.2%, the highest in three years. Meanwhile, oil prices have fallen significantly from their 2026 highs, even though they remain higher than levels we saw at the beginning of the year.
