Core Viewpoint - Investors are preparing for increased market volatility as the US-Iran conflict escalates, with President Trump issuing a 48-hour ultimatum to Iran regarding the Strait of Hormuz, which could lead to military action if not complied with [1][2]. Group 1: Market Reactions - Trading in US equity futures, Treasuries, and crude oil is set to resume after a week of significant sell-offs in stocks and bonds, with Brent crude prices reaching over $112 per barrel, the highest in nearly four years [3]. - The S&P 500 index fell by 1.5% on Friday, marking its fourth consecutive weekly loss, the longest losing streak in a year, driven by concerns over rising inflation and weaker economic growth [6]. - The benchmark 10-year Treasury yield increased by 13 basis points to 4.38%, the highest level since late July, as investors adjusted their expectations for interest rate hikes [6]. Group 2: Economic Implications - The ongoing conflict and rising oil prices are contributing to fears of a new inflation shock, prompting speculation that the Federal Reserve and other central banks may need to raise interest rates [4][6]. - Analysts suggest that the heightened rhetoric surrounding the conflict is likely to lead to a risk-off sentiment in the markets, as the potential for long-term disruptions to global energy supplies becomes more pronounced [7].