In a recent discussion, Steve Englander from Standard Chartered Bank highlighted the resilience of US markets as they navigate geopolitical tensions in West Asia. He observed that while US equities have slightly retreated from their highs, their correlation with oil prices has diminished, indicating a more stable market response. Despite initial fears of prolonged disruption, both sides in the conflict seem hesitant to escalate hostilities further. Englander noted that the US dollar has strengthened against major currencies, although he emphasized that this is more closely related to equity market performance than to oil price fluctuations. He pointed out that the robust performance of US equities could paradoxically contribute to a weaker dollar. Looking ahead, he anticipates that US Treasury yields, currently around 4.33%, will rise beyond 4.4%, driven by improving economic activity and real returns. Overall, while uncertainties remain, the markets are balancing geopolitical risks with strong economic fundamentals.