Ed Elson

As part of the agreement, Iran said it would reopen the Strait of Hormuz, but would impose a fee of $2 million per ship to help fund its reconstruction efforts.

The market's reaction was immediate.

Brent crude fell below $100 a barrel.

S&P futures jumped, signaling a sigh of relief.

And on Wednesday, Defense Secretary Pete Hegseth declared, quote, decisive military victory over Iran.

But General Dan Kaine said the U.S.

is ready to resume attacks if the ceasefire falls apart.

Meanwhile, Israel continued its Hezbollah strikes, and the Strait of Hormuz remains jammed.

So the situation is not resolved yet.

and the economic impact is now coming into focus once again.

The conflict is expected to push inflation higher, with Bank of America projecting the Fed's preferred measure, PCE, could approach 4% this quarter.

So for investors, the big question is, how do you navigate this kind of uncertainty?

Here to help us answer these questions, we are joined by the chief economist at Moody's Analytics, Mark Zandi.

Mark, good to have you on the program.

So,

at the beginning of the week, the question was, are we going to bomb Iran?

Are we going to nuke Iran?

Was actually a question that a lot of people were asking.

The answer was no.

But I think the question becomes now, have things changed?