But G7 countries pledged to release strategic oil reserves if needed, easing oil prices. President Donald Trump’s insistence the war is “very complete” was another boost. By market close<\/a>, major indexes actually finished the day in the green as oil prices dropped.<\/p>\n At least, for now.<\/p>\n Wall Street vet Ed Yardeni, who is typically bullish, raised the chances of a stock meltdown<\/a> from 20% to 35%. He also mentioned the dreaded s-word \u2014 stagflation<\/a> \u2014 in a nod to the 1970s oil crisis that gave investors headaches.<\/p>\n \n Every time Dan publishes a story, you’ll get an alert straight to your inbox!\n <\/p>\n \n Stay connected to Dan and get more of their work as it publishes.\n <\/p>\n Others are less fearful. Pantheon Macroeconomics said in a note to clients on Monday that fears over oil prices spiking inflation are overblown. The reason? The US labor market is too weak to support large price spikes<\/a>.<\/p>\n “Higher inflation expectations will be meaningless if employers still hold the cards in wage setting and their customers retrench,” wrote Samuel Tombs, Pantheon’s chief US economist.<\/p>\n Energy economist Daniel Yergin is also taking an optimistic view. He believes the global economy is more resilient than we’re giving it credit for<\/a>.<\/p>\n Ultimately, what matters most is how long this oil crisis lasts.<\/p>\n An extended closure of the Strait of Hormuz will be a lot harder for the markets and economy to shake off than just a one-off price spike.<\/p>\n “While market and survey-based inflation expectations can be sensitive to oil at high frequency, history suggests only marked and persistent spikes in the price of crude trigger persistent inflationary cycles,” BofA analysts wrote<\/a>.<\/p>\n That’s not stopping some people from preparing for the worst.<\/p>\n![\"Dan](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/03\/678587bc8951662c9f1fef47.jpeg\")
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