Goldman Sachs CEO Solomon states that the market's response to the Iran war has been surprisingly mild

LootboxPhobia · 2026-03-05T03:24:50+00:00

Goldman Sachs CEO Solomon was surprised by the mild reaction of financial markets to the Iran conflict, as the market needs time to digest the event's impact. The rise in U.S. bond yields contradicts oil price fluctuations, with investors worried that rising energy prices will exacerbate inflation. Trump stated that he will provide insurance for oil tankers to facilitate passage through the Strait of Hormuz.

LootboxPhobia

2026-03-05 03:24:50

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Investing.com - Goldman Sachs Chairman and CEO David Solomon said that as the Iran conflict enters its fifth day, the financial markets’ response has been surprisingly mild.

Speaking at the Australian Financial Review Business Summit on Tuesday, Solomon said he was surprised by the market reaction given the seriousness of the situation. Investors have been closely watching oil prices after Iran announced the Strait of Hormuz had been closed and that any ships passing through would be targeted.

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Solomon stated that it would take the market several weeks to fully digest the short- and medium-term impacts of these events.

He added that the key question remains whether the conflict will become more prolonged, whether it will start affecting the energy supply chain, or whether it will influence consumer sentiment and behavior in different parts of the world. The CEO of Goldman Sachs also noted that there is not enough information or data at this time to make a clear judgment.

Major U.S. stock indexes rose slightly shortly after opening on Wednesday.

U.S. Treasury yields have been rising, which is contrary to the typical safe-haven pattern. During geopolitical conflicts, investors usually flock to bonds, pushing prices up and yields down. But this time, bond prices fell and yields climbed as investors worry that rising energy prices could exacerbate inflation and keep interest rates high for a longer period.

Oil prices were relatively stable in early Wednesday trading, after President Trump stated on Tuesday that the U.S. would provide insurance for tankers in the Persian Gulf to facilitate maritime traffic through the Strait of Hormuz — one of the world’s most critical oil choke points.

Trump said Tuesday that a war with Iran could lead to higher oil prices in the short term, but he predicted that prices would fall once the conflict subsides.

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