POLITICSTHE ATLANTIC
The TACO Equilibrium
The article discusses the ongoing Iran war and the closure of the Strait of Hormuz, noting that oil prices have remained stable despite predictions of a spike. It introduces the TACO theory, which suggests President Trump will eventually end the conflict to avoid economic fallout, creating a dynamic equilibrium between market expectations and his decisions.
Mentioned
Related Signal
Adjacent reporting
- Oil Unlikely to Go Back to Pre-War Prices, Energy Aspects Says
- Why Oil Markets Won’t Recover Quickly From the Iran War
- How to think about the Iran war — and what it means for oil and stocks
- Iran War Wipes Out Global Oil Demand Growth This Year
- Katrina Dudley on Oil Prices, Market Impact of War In Iran
- Oil to Test Wartime Highs If Hormuz Standstill Drags, JPM Warns