Too early to tell scope of Iran strikes, Trump tells Congress
In a letter to Congress, the US president says that the threat from Iran had become "untenable".
Last updated: 2026-03-03 23:42:28 ET
Pulse AI Brief
Updated Mar 3, 2026 10:01 PM ET
South Korea's Kospi plunged 7% as Asia-Pacific markets extended a broad selloff tied to the escalating U.S.-Iran conflict. The VIX hit its highest level since November, signaling acute investor anxiety, while Jim Cramer urged retail investors to hold positions rather than panic-sell into the volatility.
Risk-off sentiment is hammering equities globally, with energy stocks and defense names diverging sharply from the broader tape. Trump himself acknowledged the war will push oil prices higher for Americans — a rare admission of economic cost that adds to stagflation concerns already weighing on rate expectations.
A prolonged conflict threatens to reprice the entire macro environment, with energy supply disruption through the Strait of Hormuz the central tail risk. Markets are now pricing in a scenario where the Fed is forced to hold rates even as growth slows.
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