The Iran Conflict's Market Surprise

Summary

Are financial markets completely misjudging the Iran conflict? David Woo argues that the current calm is a dangerous illusion, predicting an escalation within days and a severe market downturn. He believes China's support for Iran, not its pressure, is key, and dismisses the idea that China would force Iran to de-escalate when the Strait of Hormuz is Iran's main leverage. Woo also suggests Trump's actions are a calculated chess game, possibly even involving surprising allies like J.D. Vance, to regain control before a crucial Congressional deadline. He warns that a failure to resolve the nuclear program and Hormuz issues will lead to a significant spike in oil prices and a stock market crash.