The US decision to keep the naval blockade of Iranian ports indefinitely will continue to pressure oil prices upward as Iran's oil exports are choked off, increasing supply concerns and keeping crude prices elevated.
Vanguard expects a correction in equity markets, with a rotation away from overvalued US tech into value stocks and non‑US equities. This is driven by uncertainty about whether AI mega‑cap investments will deliver an adequate rate of return; if AI fails to deliver the expected productivity transformation, the correction would be larger.