Conflict in the Middle East: Implications for Markets and Macro

This document analyzes the implications of the US-Israeli military strikes on Iran for global energy markets, inflation, and financial conditions. It discusses potential scenarios based on the conflict's duration, oil price forecasts, and macroeconomic impacts, including effects on GDP and market volatility. Key insights on the Strait of Hormuz's role in energy supply and the expected responses from central banks are also provided.