The Iran conflict isn’t panicking investors — yet. That’s about to change.
Why it matters: The current market calm will likely end, potentially triggering a significant shift in investor behavior.
- Credit spreads have not widened, indicating a lack of widespread investor concern.
- The oil-futures curve does not signal expectations of a prolonged supply disruption.
- The S&P 500 has not experienced a correction, maintaining its current trajectory.
Despite escalating tensions, investors are not yet panicking over the Iran conflict, as evidenced by stable credit spreads, a normal oil-futures curve, and the S&P 500 avoiding a correction. This calm is expected to be short-lived, however, suggesting a potential shift in market sentiment is imminent.
