Global markets reeled Monday as President Trump warned that potential strikes on Iran could last weeks, prompting Tehran to stand down. Oil prices surged their most in four years as tanker traffic stalled in the Strait of Hormuz, a critical waterway through which roughly 20% of global oil passes. A key Saudi refinery shutdown added to supply concerns.

The escalating conflict reignited inflation fears just as markets were already showing signs of strain. The combination of disrupted oil flows and refinery capacity losses threatens to push energy prices higher, potentially derailing the Federal Reserve's efforts to manage inflation. Investors scrambled to assess the economic fallout from the widening Middle East crisis.

At Bloomberg's Invest event in New York, panelists debated the implications for global markets and the economy. The situation highlights how quickly geopolitical tensions can disrupt energy markets and broader financial stability. With oil prices already elevated, any prolonged conflict could force central banks to reconsider monetary policy as inflation pressures mount.