As hostilities in the Middle East flare up again, investors are increasingly grappling with the possibility of a prolonged conflict and pricing in a “long grind.”
The latest escalation comes after U.S. Central Command struck Iranian military targets, drawing retaliation from Tehran, which attacked Gulf countries on Thursday.
U.S. futures were up, though markets in Asia were broadly lower. Oil, which was last up about 2% Thursday, has stayed below $100 a barrel as traders still see enough buffers in the market to prevent a full-blown supply shock.
Despite disruptions to shipping through the Strait of Hormuz, alternative export routes, increased U.S. energy exports and strategic petroleum reserve releases have helped cushion the blow.
For investors, the bigger challenge may be a world in which energy costs remain elevated, while borrowing costs stay high. The Iran conflict, which the U.S. said will not be an “endless” one, looks like getting increasingly protracted, if not turning into a “forever war.”
Link: https://www.cnbc.com/2026/06/11/iran-war-us-trump-strikes-centcom-oil-investors.html