- Despite President Trump’s threat of “regime change” in Tehran following U.S. strikes on Iranian nuclear sites, the markets have reacted with calm and even optimism. Oil prices, after a brief spike, returned to pre-strike levels, and volatility indices dropped, while equities edged higher. Investors are unconcerned about major oil disruptions, reasoning that Iran is unlikely to close the Strait of Hormuz and harm its own economy.
You’d think the price of oil would be heading toward $100 per barrel right now—but it’s not.
