Market stress eases on reports of a potential shift in US Mideast strategy
Financial markets are staging yet another relief rally after the Wall Street Journal reported that Donald Trump is considering declaring victory in the Iran conflict without establishing control over the Strait of Hormuz. According to an article published last night, the president now believes the US should limit itself to incapacitating Iran’s navy and missile forces, unilaterally ending large-scale attacks before achieving the regime change goals set out at the war’s onset. Relative to the alternatives, this is a market-friendly outcome: it would give Tehran an opening to pull back on its strikes on regional infrastructure and allow shipping to...