Investors are misreading news about the Iran war, analysts say as markets whipsaw
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- Iran announced the Hormuz Strait closure again on Saturday, halting the 20% of global oil and LNG shipments that flow through it.
- S&P 500 rose 4.5% last week, buoyed by optimism after the brief strait reopening.
- Nasdaq Composite jumped 6.8% and logged its 13th consecutive winning session on Friday, a streak not seen since 1992.
- Trump's tariff threats have been treated as a market lever, yet analysts warn his influence over the Iran conflict is limited.
- Matt Gertken warned investors that Iran’s higher pain threshold after being attacked will keep markets volatile beyond the ceasefire’s Tuesday expiry.
Why it matters: Investors in US equities gain short-term upside as the S&P 500 rose 4.5% last week, but the renewed Hormuz closure threatens oil supply, risking a slowdown in corporate earnings and higher inflation.
