Trump teased an Iran deal that didn't happen, but markets rallied anyway
Analysts are puzzled by how reliably markets rally whenever the Trump administration dangles the prospect of an Iran deal, even as oil reserves and munitions stockpiles are reportedly dwindling. Experts question how long the pattern can continue.
The Trump administration's suggestion that a deal with Iran could be close sent markets higher once again this week, even though no agreement materialized. Analysts say they are puzzled by how consistently investors respond to the signal.
Reports indicate that US oil reserves and munitions stockpiles are dwindling, raising the economic cost of continued tension around the Strait of Hormuz. Even so, investors keep taking on risk, betting that any eventual deal would push oil prices lower.
Experts warn the market's reaction is not sustainable. Repeated waves of optimism without a concrete agreement, they say, could erode confidence at the moment a real crisis actually hits.
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