US equites slumped out of the gate this morning in reaction to the news that the US struck Iranian nuclear facilities over the weekend, but the market has already more than recovered all of the initial weakness. The market is hopeful that the US strike will not prompt a larger escalation, but Iran has vowed to respond, so there is plenty of uncertainty still in the picture.
Crude Oil initially rallied past last week’s high of $80 /bbl, boosted in part by speculation that Iran could close the Strait of Hormuz after the country’s parliament approved the move. This is a move that would disrupt 20% of global oil supply (and ~5% of US oil supply).