Institution: If the US and Iran reach an agreement, the inflation premium currently factored into interest rates will disappear almost completely within 48 hours.

Mike Horahan, CEO of the financial company Electus Financial, said: "Many people have already stepped back to observe from the sidelines. If there is some sort of agreement, ceasefire, or truce between the US and Iran, and oil prices drop significantly, the inflation premium currently factored into interest rates will disappear almost completely within 48 hours. The interest rate market is reacting to the previous crisis caused by the pandemic, when government spending increased significantly due to the outbreak, leading to a sudden rise in inflation rates and catching central banks around the world off guard."