By Ed Ballard
President Trump's postponement of U.S. attacks on Iranian energy infrastructure raise hopes that energy flows through the Strait of Hormuz could recover soon, but traders will be wary of taking his comments at face value, said Hamad Hussain, economist at Capital Economics.
"If talks have been so positive then you would hope that a path to a opening of the Strait has become clearer," Hussain said.
Trump's rapidly shifting stance makes it hard to predict how the next phase of the conflict will unfold, he added.
Hussain noted that Trump's reversal came after a rapid rise in Treasury yields, with investors putting the likelihood of at least one interest-rate hike by the Federal Reserve this year at 57%.
"Perhaps that's where Trump's pain point is," Hussain said.
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(END) Dow Jones Newswires
March 23, 2026 08:20 ET (12:20 GMT)
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