Will There Be Panic Before The Midterms

The ongoing US-Iran conflict and closure of the Strait of Hormuz are driving up oil prices and threatening market stability. The Strategic Petroleum Reserve (SPR) is nearing its emergency threshold, limiting the US's ability to buffer further oil price shocks. Short-term relief from Venezuelan oil is unlikely due to technical and logistical constraints, despite political announcements. Rising energy prices and bond yields, coupled with persistent inflation, pose significant risks to risk-on assets and equity valuations. TimothyOLeary/iStock via Getty Images Initially, US officials expected the war to last 5-7 weeks, but we have entered the 26th week with no end in sight. The Strait of Hormuz remains closed and yesterday, the US and Iran restarted strikes against one another.