In the immediate aftermath, the Islamic Revolutionary Guard Corps (IRGC) has assumed a central role in managing a transition toward a provisional military led framework. This shift in Tehran’s leadership structure is expected to recalibrate regional proxy alignments and nuclear policy, while simultaneously heightening risks to the Strait of Hormuz, through which 20% of global LNG and significant crude volumes flow.

Global financial markets have responded with a sharp pivot toward safe haven assets as regional tensions escalated following US and Israeli strikes on Iran. Gold prices surged over 2% to exceed $5,400 per ounce, while Silver climbed toward $95 per ounce. In the currency markets, the US Dollar strengthened against the Euro, pushing the EUR/USD pair down to the 1.1700 level. Energy markets are under extreme pressure, with Brent and WTI crude spiking over 6% as disruptions in the Strait of Hormuz overshadow previous production targets.

Domestic US economic themes center on the record integration of equities into household wealth, with one third of American financial assets now held in stocks. While this "wealth effect" supports consumption, it introduces significant macroeconomic fragility in the event of a market correction. Meanwhile, the US housing market saw mortgage rates dip below 6% for the first time since 2022, though structural hurdles like record down payments and high property values continue to limit overall affordability and market access for new buyers.

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