Markets are beginning to feel some degree of relief as conflict in the Middle East leans in the direction of resolution, according to the chairman and CEO of one of America’s biggest banks.
“I think it was a pretty quick back and forth over the last couple weeks, but I think the market loves resolution,” Bank of America’s Brian Moynihan said on “Mornings with Maria,” Tuesday, “and [it] potentially had a strong resolution over the last 72 hours, which I think the market’s reacting to favorably.”
Just before Tuesday’s market open, Fox News reported that Iran appeared to ignore President Donald Trump’s plea to adhere to the ceasefire he brokered between the Islamic Republic and Israel.
STRAIT OF HORMUZ DISRUPTION: MORE BARK THAN BITE FOR U.S. ENERGY, EXPERT CLAIMS
Israel vowed to respond to the alleged violation, with Defense Minister Israel Katz announcing that he ordered the military to strike Tehran. Additionally, Israel Defense Forces (IDF) Chief of the General Staff Maj. Gen. Eyal Zamir vowed the country would “respond with force.”
Iran’s military denied violating the ceasefire, according to reports. However, the IDF said on Tuesday that air raid sirens were sounding across the country.
Markets have been trending higher in favor of the ceasefire deal and since the U.S. took out Iran’s key nuclear sites late Saturday night.
“Oil went up and came back down, and so I think the real worry about the Middle East is a geopolitical worry, but also the effect on oil prices, and it’s settled back down,” Moynihan said.
Energy experts have recently told Fox News Digital any future price surges on oil would be temporary and short-lived after Iran has also threatened to close the Strait of Hormuz, which transports 20% of global petroleum liquids.
“So that would be good for the American consumer, ultimately,” the CEO expanded on lower long-term oil prices, “because they get the benefit for that, as well as consumers around the world.”
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Fox News’ Rachel Wolf and Trey Yingst contributed to this report.
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