The conflict in the Middle East is sending shockwaves through global markets, with energy and agricultural trade flows feeling the immediate impact. Washington analyst Jim Wiesemeyer says the disruption goes far beyond crude oil prices. “The key here is the duration of the conflict.” Markets are closely watching how long tensions persist and whether the conflict spreads. “It’s obviously impacting the energy markets the most, both from a supply perspective because of Iran and a logistics perspective because of the transportation uncertainties especially in the Strait of Hormuz so that’s the overall impact that it’s still ongoing watch the duration of the conflict see if it spreads if it spreads you’re going to have more negative consequences in the equity markets and other markets as far as the Federal Reserve is concerned I think this increases the odds that they won’t do anything on interest rates at the March Federal Open Market.”
