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UPDATE

Iran: an update on weekend headlines

Apr 05, 2026 · 04:13 PM ET

MARKETS

No market data provided in today's commentary.

RATES & FED

No Fed or Treasury rate information provided in today's commentary.

MARKET OUTLOOK

The Iran situation continues driving massive stagflation pressures globally, with economic fallout mounting regardless of whether fighting stops tomorrow. Markets remain hostage to Trump's escalating rhetoric and deadline shifts (now Tuesday 8pmET), though the underlying military realities suggest limited viable options for meaningful escalation. The rescue of that F15 pilot exemplified American military capabilities but also highlighted the massive complexities of putting thousands of troops on Iranian soil.

GEOPOLITICAL

Iran's weekend permission for Iraq to use Hormuz represents the most significant deescalation opening, potentially providing White House pretext to step back from Tuesday's civilian infrastructure bombing threats (WSJ). Trump has dramatically ratcheted up rhetoric, now threatening to bomb Iranian power plants and bridges if no Hormuz agreement by Tuesday, with senior aides reportedly convincing him civilian infrastructure constitutes legitimate military targets given rebuilding risks (WSJ Saturday report). US intelligence warns Iran unlikely to fully reopen Hormuz soon, though country-by-country agreements are emerging — France managed to get a container ship through Friday, first Western vessel since war began (Reuters). Negotiations between US and Iran have reportedly hit a "dead end" according to Friday WSJ reporting, though Hormuz traffic has reached highest levels since conflict started (Bloomberg Saturday). The US is doubling ship insurance coverage in Hormuz to $40 billion, though insurance won't solve the fundamental missile attack risks that only diplomacy can address.

COMPANY NEWS

No individual company news provided in today's commentary.

MACRO & FED DATES

MONDAY 1pmET — Trump press conference on Iran situation and next steps.

TUESDAY 8pmET — Trump's latest deadline for Iran agreement on Hormuz before threatened civilian infrastructure bombing campaign.

EARNINGS THIS WEEK

No earnings calendar provided.

EARNINGS NEXT 2 WEEKS

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