Markets Brace for Volatility as U.S.-Iran Conflict Enters Second Week
Investors are closely monitoring the U.S.-Iran conflict as it enters its second week, causing significant disruption to global oil markets with Brent crude prices exceeding $90 per barrel. The Atlanta Fed GDPNow model has revised first-quarter economic growth projections down to 2.1%, reflecting concerns over a weakening jobs market and persistent inflation risks. Market volatility intensified this week as traders adopted defensive positions ahead of critical economic data releases scheduled for March 9 through 13. Analysts warn that prolonged conflict could sustain high oil prices, complicating Federal Reserve policy decisions regarding interest rates under the upcoming leadership transition. The weakening labor market and sticky inflation further muddy the interest rate outlook for the Fed chair taking over in May.