The Fed Steps Forward as the Oil Shock Steps Back

The US/Iran agreement to reopen the Strait of Hormuz removes a major geopolitical overhang that had been pressuring markets for months. With that risk receding, attention shifts to the first FOMC meeting of the Warsh era, a potentially market-moving policy event. The tone is cautiously risk-on as investors reprice geopolitical risk and await the Fed's next signal.

Analysis

The US/Iran agreement to reopen the Strait of Hormuz removes a major geopolitical overhang that had been pressuring markets for months. With that risk receding, attention shifts to the first FOMC meeting of the Warsh era, a potentially market-moving policy event. The tone is cautiously risk-on as investors reprice geopolitical risk and await the Fed's next signal.