Bloomberg Surveillance · Thursday, July 9, 2026
Speaker 3 suggests that escalating tensions with Iran could lead to inflationary pressures, forcing the Federal Reserve to tighten monetary policy. This tightening could reduce liquidity in financing markets, potentially impacting capital expenditures and, consequently, earnings.
“If we get a world where the FED is forced to engage in more tightening because this Iran trade or because the Iran conflict starts to heat up again, we start to get inflationary pressures. The FED really does have to be a little more restrictive.”
“That's the sort of thing that could easily start to funnel back right, if you can't get the debt issuance that's expected, if the equity markets aren't quite as open as people are expecting, that. Sort of tightening of liquidity is the thing. In the financing markets that would then start to lead back in terms of what's going on in how much capex they can do, and from the capex the earnings and back.”