Defense Secretary Pete Hegseth asserted that President Trump can resume military strikes against Iran without congressional approval, despite surpassing the 60-day limit set by the War Powers Resolution. During a Senate Appropriations Committee hearing, Hegseth emphasized that if Trump deems it necessary, he possesses the authority to act under Article 2 of the Constitution. This claim comes amidst ongoing tensions with Iran and a fragile ceasefire, which have already contributed to rising gas prices and global oil market volatility.
The implications for financial markets are significant, particularly in the energy sector. The conflict has already led to a spike in oil prices, with the Strait of Hormuz—critical for global oil transport—under threat. As negotiations remain stalled, any escalation in military action could further disrupt supply chains and exacerbate inflationary pressures.
Market professionals should closely monitor developments in U.S.-Iran relations, as renewed hostilities could lead to increased volatility in oil prices and broader market reactions, particularly within energy and related sectors.
Source: cnbc.com