Geopolitical tensions with Iran caused minimal market disruption, with US stocks ending slightly higher and oil rising modestly. Traditional safe haven assets are struggling as markets show resilience to geopolitical shocks. Historical precedent suggests equity markets typically recover quickly from such events, with the S&P 500 averaging gains of 2-8% in the months following geopolitical risk events.

The usual safe havens are failing investors seeking protection. Treasuries took heavier hits than other developed market bonds, while the yen has weakened despite global concerns. Swiss franc strength risks triggering intervention from the Swiss National Bank. The dollar gained slightly, but comes with its own set of market complications, leaving traditional safe assets in question.

Gold has emerged as the primary beneficiary, trading near $5,360 per ounce and heading toward recent record highs. Investor complacency about the Iran situation may be misplaced, with analysts warning of potential inflationary impacts. The combination of geopolitical risk and inflation concerns could force incoming Fed Chair Kevin Warsh into a difficult position regarding interest rates.