What's Happening
Defense Secretary Pete Hegseth and Joint Chiefs Chairman Gen. Dan Caine fielded questions at the Pentagon on the third day of active U.S.-Israeli strikes against Iran, as the Trump administration prepared to brief Congress ahead of a looming war powers resolution vote. Middle East airports remain closed and air travel chaos is intensifying, with Emirates announcing only a limited resumption of flights as early as Monday afternoon.
Market Impact
Oil prices are spiking with the conflict now a direct supply-chain threat in a midterm election environment where energy costs are already politically toxic; gold climbed to a one-month high while silver dropped nearly 5% below $90 an ounce as investors rotated into safe-haven assets. Aviation stocks and Middle East-exposed carriers face acute near-term pressure as regional airspace closures compound.
Broader Implications
Trump's decision-making on Iranian oil infrastructure will be the single biggest variable determining how far energy prices run — a dynamic with direct consequences for Republican midterm prospects and Federal Reserve rate policy. A war powers vote in Congress could force the first major constitutional confrontation between the legislative and executive branches over this conflict.
