SITUATION UPDATE: DAY 22

Operation Epic Fury is now three weeks old. Over 3,000 vessels sit immobilized across the Middle East—the largest disruption to global shipping since World War II. The International Maritime Organization convened an emergency session this week, urging nations to devise strategies to evacuate stranded vessels—a measure the body has never before taken in peacetime. U.S. Central Command reports over 8,000 targets struck and more than 130 Iranian naval vessels destroyed. The USS Abraham Lincoln remains in the Arabian Sea, the USS Gerald R. Ford in the Red Sea. An additional 2,200 Marines and three more warships were ordered to the region on March 20, with more than 50,000 U.S. troops now stationed across the theater. Iran has launched 70 waves of strikes and shows no sign of relenting—widening attacks this week to target energy infrastructure across six Gulf states for the first time.

In this update, we cover the oil risk premium, what $100+ oil means for consumers and the Fed, how the conflict escalated this past week with Iran widening attacks on Gulf energy infrastructure, world leaders and allies weighing in on Strait of Hormuz security, three resolution scenarios, what credit spreads and the 200-day moving average are signaling, and what macroeconomic data to watch in the week ahead.

SITUATION UPDATE: DAY 15

Operation Epic Fury is now two weeks old. U.S. Central Command reports nearly 2,000 targets struck and more than 20 Iranian naval vessels destroyed — heightening fears of retaliation in the Strait of Hormuz, the chokepoint through which roughly 20% of the world’s traded oil passes. The USS Abraham Lincoln remains in the Arabian Sea, the USS Gerald R. Ford in the Red Sea, and a third carrier — USS George H.W. Bush — completed combat certification on March 12. An additional 2,500 Marines and the USS Tripoli were ordered to the region this past Friday, with more than 200 U.S. aircraft operating in theater.

In this update, we cover the oil risk premium and what it means for markets, how $100 oil moves through the economy, what history tells us about 1973 and why a repeat is unlikely, three resolution scenarios, and what credit spreads are signaling.

On February 28, the United States and Israel launched Operation Epic Fury, a joint air and naval campaign against Iran’s military, Revolutionary Guard, and nuclear sites.

In the opening hours, Iranian Supreme Leader Ayatollah Ali Khamenei and several senior officials were killed.

Now in its seventh day, U.S. Central Command reports thousands of targets destroyed, including two dozen naval vessels and hundreds of ballistic missiles. More than 50,000 American troops, 200 fighter aircraft, and two carrier groups are engaged.

Before the escalation, WTI crude traded near $67 and Brent around $72.50. During the first week, the S&P 500 fell 2% and the Dow 3% as investors weighed the Hormuz blockade and rising energy risks.

As of March 9, WTI trades at $103.10 and Brent at $107.75, up roughly 54% and 49% since the operation began. Despite sharp swings, trading remains orderly as markets adjust to the surge from pre-conflict levels.

Your Weekly Market Compass – February 27, 2026

Markets spent the week ending February 27 walking a narrow ridge between resilient growth and rising geopolitical risk, with U.S. and global equities modestly weaker while earlier‑year gains stayed intact. As of Friday’s close, large‑cap U.S. stocks remained positive year‑to‑date on a total‑return basis, but most of the action for the week was about repricing risk rather than adding to gains. The weekend exchange of attacks involving the U.S., Israel, and Iran has since pushed oil and volatility higher into Monday’s open, underscoring how geopolitical “shocks” can arrive abruptly even when economic data appear steady. Early trading on March 2 shows a familiar flight‑to‑quality pattern—Treasury yields a bit lower, energy and defense shares firmer, and the VIX edging up from its 19.9 close on Friday—as investors reassess near‑term risk without abandoning their 2026 roadmap.