The Iran War Ceasefire Has Ended. Here's What It Means for the Stock Market.
Higher inflation and additional Federal Reserve rate hikes are likely if the ceasefire is over.
Overview
The ceasefire between the U.S. and Iran ruptured this week after the U.S. launched more than 80 strikes on Iran midweek in response to Iranian attacks on ships moving through the Strait of Hormuz. At a NATO summit in Turkey, President Donald Trump declared the ceasefire to be "over" and promised additional strikes on Iran.
The strikes and the prospect of additional military actions had an immediate impact on stocks and commodity prices. The S&P 500 (SNPINDEX: ^GSPC) was down about 0.4% on Wednesday, while Brent crude oil, the international benchmark, jumped about 4% from about $72 per barrel to $77 per barrel. The price of oil had been trending lower since mid-May, when it topped $112 a barrel.
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Originally published at www.fool.com.