While markets seem to overlook the Middle East crisis and its impact on energy supplies, central bankers signal that inflationary damage is already done.
Japanese and South Korean stock markets surged to fresh records, riding AI optimism that sent U.S. benchmarks to all-time highs.
This euphoria largely hinges on hopes for a U.S.-Iran peace deal to reopen the Strait of Hormuz. Those hopes were dented by U.S. strikes on Iran's Hormozgan province.
Even if a "Great Deal" is struck soon, the oil market hangover and knock-on effects on consumer prices will persist.
Bank of Japan Governor Kazuo Ueda cautioned that a temporary energy shock can have persistent impacts. ECB's Isabel Schnabel said a June rate hike is warranted even with a peace deal.
In New Zealand, inflationary pressures nearly led to a surprise rate hike, with warnings of more to come.
With oil near $100, the tech boom provides some support. Samsung workers approved a deal to avert a strike. Nvidia's Jensen Huang said annual investment in Taiwan will reach $150 billion.
