US-Iran War Escalates: Investors Brace for Economic Fallout, Oil Price Shocks

• The US-Iran conflict, now in its second week, is causing significant investor uncertainty and market volatility.
• US economic growth projections have sharply declined, with the Atlanta Fed's GDPNow model dropping to 2.1% for Q1.
• Oil prices surged, with Brent crude surpassing $90 a barrel; fears of $150 and Strait of Hormuz disruption loom, threatening global economies.
• A weakening job market and persistent inflation complicate the Federal Reserve's interest rate outlook amidst potential oil price-driven inflation surges.
• Investors are shifting to defensive positions, seeking safety in less vulnerable assets as market swings intensify.