March 26, 2026
Donald Trump’s second-term euphoria didn’t last long.
He had a good start with government overhead cuts and with lowering (or stabilizing) prices on everyday items. Wall Street took these moves as bullish signals.
Even the new tariffs did not shake the markets too much.
Despite the volatility, 2025 turned out to be a solid year for stocks:
Not a bad year, compared to long-term averages.
This sense of "stability" led many analysts to argue for lower interest rates. Some expected at least two cuts by the Federal Reserve in 2026. Lower rates would reduce the cost of capital and fuel another round of growth.
But everything changed at the start of 2026 with the war in Iran.
Rate cuts are now off the table. Instead, there is a real chance that rates may go even higher.
Here is what investors should expect as the year unfolds.
What began as a quick operation in Iran has turned into a full-scale war.
The first reaction to the bombing of Iran was a brief spike in oil prices. Investors hoped it would mirror the Venezuela situation, where disruptions were short-lived. But this time, events spiraled out of control.
Iran, despite losing its top leaders, continues to fight back. It is also blocking the Strait of Hormuz, a vital oil artery.
This narrow passage is the only route into the Persian Gulf. The region supplies about 20% of the world’s oil. It also exports liquid natural gas (LNG) and other key liquids.
Recent US and Israeli attacks have focused on Iran’s military facilities or other strategic targets. The plan seems to be to avoid major damage to oil infrastructure so it can restart quickly once the conflict ends.
Iran understands this. It has responded by striking critical energy assets, including Qatar’s LNG terminal.
The operator estimates the damage at $20 billion. The plant itself cost $26 billion to build.
That is not a small loss, even for the cash-rich Middle East.
More importantly, the facility is going to stay offline for an unknown period. Even if the war ended today and reconstruction began immediately, it would take months or even years to restore full capacity.
This is not a temporary oil shock. Prices will not simply fall back to normal once the bombings stop.
This is likely a prolonged conflict with deep consequences for global energy supply.
Whether we like it or not, higher oil prices push up the cost of almost everything.
It is not just about paying more at the gas pump. Almost every consumer product and service depends on energy. When oil and gas prices rise, the entire economy feels it.
This leads to higher inflation. But this time, inflation may come without real economic growth.
This is not a case where a new product hits the market and consumers willingly pay more. Instead, people will be forced to absorb higher costs because they have no choice.
Rising prices without growth mean stagflation.
This is the worst scenario for policymakers. They have no easy tools to fix it.
When inflation is high, central banks raise interest rates to cool the economy. When growth is slow, they cut rates to stimulate activity.
But stagflation breaks this playbook. Raising rates hurts growth. Cutting rates fuels inflation.
This is bad news for central banks, businesses, and consumers.
It is also bad news for Trump. A mid-term election year is not the time for stubbornly high prices. Voters will not be happy if inflation stays elevated.
Stagflation is not guaranteed. But investors should prepare for the possibility.
For now, the only certainty is that higher inflation is imminent. Hence, central banks will likely raise interest rates.
Markets had priced in rate cuts for later this year. That is no longer realistic. In fact, a rate hike is now a real possibility.
This shift in the macro outlook triggered a sharp correction in major stock indices.
It is not yet a full market crash or recession. But if the conflict escalates, either outcome is possible.
The conflict in the Middle East is proving difficult. A quick resolution seems unlikely.
If the war drags on, high oil prices will persist. That means rising prices of almost everything else.
Whether this leads to runaway inflation, stagflation, or a full recession is still unclear.
But investors should prepare for a hard landing and adjust their portfolios accordingly.
Gold remains a reliable safe-haven asset. It protects capital during periods of volatility and uncertainty. Holding some precious metals is a sensible move.
If stocks crash, some companies may trade at pennies on the dollar. For many investors, that could be a once-in-a-lifetime chance to build wealth.
At The Canadian Mining Report, we recommend the expertise of Robert Bruggeman. His The Wealthy Miner service is built to help investors navigate difficult markets and protect their portfolios.
Rob has years of experience at Canada’s leading banks. He also served as chairman of AbraSilver. At its peak, the company gained more than 10,000%. Now he is sharing his hedge fund-tested playbook with his followers.
Learn more about The Wealthy Miner here: https://www.thewealthyminer.com/
Disclaimer: This report is for informational use only and should not be used as an alternative to the financial and legal advice of a qualified professional in business planning and investment. We do not represent that forecasts in this report will lead to a specific outcome or result, and are not liable in the event of any business action taken in whole or in part as a result of the contents of this report.