Iran War Erodes Market Faith in US Gulf Crisis Management
📉 MARKETS — The backstop traders priced for 40 years just stopped working. 📌 LOOK CLOSER: The "Gulf put" was the assumption that US intervention would always cap Middle East disruption costs. With Hormuz at 10% capacity, SPR being sold to Asia, and CENTCOM denying escorts, that floor is gone. Investors repricing without the put means energy volatility is now structural, not event-driven. Sovereign debt and insurance models built on that assumption break quietly, then all at once.
