President Trump Vows Retaliation as U.S. and Iran Escalation Impacts Wall Street and Energy Prices
President Trump vowed the U.S. would retaliate against Iran following a weekend of intensified fighting that saw the U.S. complete its 10th straight night of strikes. The conflict, which includes a maritime embargo by the Houthis in Yemen and a rising death toll, has prompted Wall Street to reconsider the long-term economic impact of the war. While the S&P 500 has remained relatively stable, economists warn that ascending energy prices could weigh on the broader economy. Brent crude briefly topped $90 a barrel, and the U.S. 10-year Treasury yield has hovered near 4.6%. Analysts suggest that if oil prices remain elevated, corporate earnings may need to be trimmed. Despite the geopolitical tension, investors remain optimistic about corporate fundamentals and recent soft inflation data. The tech sector, which makes up a large portion of the S&P 500, remains relatively insulated from high energy costs. However, consumers are already feeling the impact, with gasoline prices hitting $4 per gallon and average households losing approximately $1,100 to the conflict so far.