Trump's threats toward Iran's energy infrastructure could have potentially catastrophic consequences for the future of regional oil production (this is a threat to all parties), and attacks on power plants risked transforming Iran into a failed state where 92 million desperate, water-starved people live.

It is now clear that Trump wants to end the war and prevent a major escalation. The fact is, the war has reached its limits and markets have begun to realize this. This is a positive situation and the market is responding accordingly.

Markets are justifiably skeptical that Trump could declare victory against a highly motivated rival who controls the strait and use it as leverage, then withdraw. However, prices that determine the roadmap for the financial world have shifted quite significantly. Brent oil is hovering around $100, and fears that central banks will respond with interest rate hikes have diminished.