After months in which developments in the Middle East determined the direction of the stock market almost daily, a degree of calm appears to be returning. President Trump announced this weekend that he would refrain from launching a large-scale attack on Iran, as he believes both sides are moving closer to a new agreement. If an agreement is indeed reached, it would be positive news for the financial markets. An open Strait of Hormuz would reduce pressure on oil prices and, consequently, lower the risk of further inflation.