The recent de-escalation in the Iran conflict has lowered oil prices and boosted economic activity, but the article warns that equity markets are vulnerable to renewed escalation, implying downside risk if tensions flare again.
•The Iran conflict had been moving toward resolution, leading to lower oil prices.
•Traffic picked up as a result of the détente, indicating improved economic activity.
•The author argues that the current calm is fragile and equities are vulnerable to renewed escalation.