Global equity markets are exhibiting resilience, with investors increasingly optimistic about a resolution to ongoing geopolitical tensions, particularly between the United States and Iran. Market commentator Peter Cardillo from Spartan Capital Securities noted that the worst phase of conflict may have already been priced in, despite ongoing military flare-ups. However, he cautioned that oil prices, which recently approached $100 per barrel, remain a significant threat to economic stability. Elevated crude prices could keep inflation high, complicating the efforts of central banks to balance growth and price stability. The impact is already visible in sectors like airlines and gasoline, where prices have surged, straining household budgets and potentially reducing discretionary spending. Cardillo emphasized that unless oil prices drop to the $60-$65 range, inflation pressures are likely to persist, making it difficult for central banks, including the US Federal Reserve, to cut interest rates. Additionally, uncertainty surrounding US trade policy, particularly legal challenges to former President Donald Trump’s tariff measures, adds another layer of risk to the economic outlook. Despite these challenges, equity markets have remained stable, indicating investor belief in the global economy's ability to navigate these turbulent times.