The main macro threat from fighting between Israel and Iran is a run-up in energy prices that persists and drives headline inflation higher.

Global investors may be underpricing the impact of a conflict between Israel and Iran, market watchers warned on Monday, as stocks rallied despite escalating warfare in the Middle East. The two regional powers continued trading fire on Monday, marking the fourth consecutive day of fighting since Israel launched airstrikes against Iran last week.

U.S. government debt has gotten modestly cheaper since overnight, sending yields only slightly higher as of Monday morning, even as the escalating Israel-Iran conflict shows little signs of any near-term resolution.

Investors struck a cautious tone on Monday, as an escalating conflict between Israel and Iran pushed oil prices higher and raised wider questions about the long-run impact.

US stock market jumps as Dow rallies 500 points as investors grow hopeful that the Israel-Iran conflict may stay contained. After a tense weekend of strikes and retaliation, a Wall Street Journal report hinted that Iran may be open to talks if the U.