US stocks slip as Goolsbee warns Iran war inflation
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- U.S. stocks ended mixed on Tuesday as the deadline for Iran to reopen the Strait of Hormuz approached.
- All three major U.S. stock indexes pared in the last hour of trading after Pakistan’s Prime Minister Shehbaz Sharif urged President Trump to extend the Iran deadline.
- U.S. dollar hovered near an 11‑month high as investors sought safety amid Middle East tensions and the looming Iran deadline.
- Austan Goolsbee warned that a potential Iran war could drive inflation higher while slowing the economy, leaving the Fed without a clear policy playbook.
- Oil prices rose, with Brent up 0.2% to $109.94 and WTI up 2.6% to $115.3, as markets braced for Trump’s deadline and possible strikes on energy infrastructure.
Why it matters: Investors see equity values slip as the dollar strengthens and oil climbs, while the Fed’s warning that an Iran conflict could fuel inflation tightens conditions for households. The drop in the Dow, S&P 500 and Nasdaq, together with Brent’s 0.2% rise to $109.94 and WTI’s 2.6% jump to $115.3, signals a shift toward safe‑haven assets, hurting risk‑on investors and raising costs.
