Markets remained volatile last week as investors reacted to ongoing geopolitical developments tied to the conflict in Iran, with energy prices continuing to play a major role in driving market moves. Early in the week, optimism around a temporary pause in strikes on Iranian energy infrastructure briefly supported both equity and bond markets, but sentiment weakened as it became clear that negotiations around a meaningful cease fire remained far apart. As the conflict extended toward the one-month mark, markets have increasingly priced in the risk of elevated oil prices over a prolonged period. U.S. equity markets continued their multi-week decline. The S&P 500 down roughly 2% for the week, driven primarily by weakness in large technology stocks. More value-oriented sectors were relatively resilient, and energy stocks continued their recent strong performance. Bond yields continued to move higher as investors weighed the inflationary impact of higher energy costs and the implications for central bank policy. Higher gasoline prices are expected to push headline inflation higher in the near term, likely delaying progress toward the Federal Reserve’s inflation target. Overall, markets reflected a cautious tone as investors balanced near-term inflation risks against a still-resilient, though uneven, growth outlook.