Tim Stenovec

That doesn't necessarily mean, though, Mike, that we will not see and are not seeing an inflationary effect from this more than month-long conflict in Iran.

What can the Fed do or what will the Fed do if we do see inflation flow through as a result?

Bloomberg TV and Radio International Economics and Policy correspondent Mike McKee.

Mike, thanks so much.

Well, there's higher energy prices in focus.

The war in Iran officially enters its second month.

Treasury Secretary Scott Besant indicated some optimism about a reopening of the Strait of Hormuz, but that's as President Trump renewed threats against Iran if a deal isn't made soon.

Let's bring in Bloomberg Balance of Power co-host Kayleigh Lyons to break it all down.

Kayleigh, the president said...

The U.S.

is in, quote, serious discussions with a new regime in Iran.

An Iranian official earlier said there haven't been any direct talks.

Do we know who is talking to whom right now?

Bloomberg's Kayleigh Lyons.

More from her and Joe in the 1 o'clock hour on A Balance of Power.

Thanks so much, Kayleigh.

Well, back to markets, because the Nasdaq 100 has slipped into correction territory.

The sell-off in big tech now flashing signals that have marked turning points in the past.

Many in Wall Street now see the sector as a potential opportunity, pointing to oversold conditions and the likelihood of relief rallies, even amid uncertainty tied to the Iran war.

For more, let's bring in Denise Chisholm, Fidelity's Director of Quantitative Market Strategy.