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The U.S. has not achieved the most important strategic goals that President Trump talked about," Evercore founder and senior chairman Roger Altman told CNBC Monday morning. "That is, he said, Iran still has its stores of enriched uranium, the Strait of Hormuz remains effectively closed, and there hasn't been regime change in the country." "That U.S. markets have so far had a 'mild' reaction to the latest developments—Trump on Monday morning launched a naval blockade of Iran's ports in the strait—adds risk to Washington's strategy, because investors already appear to be pricing in a speedy end to the fighting, Altman said. U.S. investors last week appeared to buy the de-escalation story, shrugging off the possibility of a drawn out conflict in Iran in spite of re-escalating tensions between the country and leaders of the Iranian regime. That may be continuing today: The Dow Jones Industrial Average is down only slightly, while the S&P 500 and Nasdaq, are rising. WHY THIS MATTERS TO YOU The U.S.'s latest move in the Middle East could take longer to execute than markets appear to expect. That, they argue, raises the question of whether Washington will stick with its blockade strategy if markets retreat. U.S. Treasury yields, which rise when bond prices fall, have gotten a bit of a bump. The U.S. dollar is roughly flat, and the fear gauge, formally known as the CBOE VIX Index, remains below 20, signaling stability in markets. Brent crude oil futures have risen slightly to around $100. Some forecasters question the effectiveness of the strategy. Marko Papic, chief strategist at BCA Research, on Sunday said he doubted "the idea that the U.S. Navy has the temerity and the gall to actually interdict shipping through Hormuz. It risks war with China, and we guess Australia, the UK, Japan, South Korea, et al., if it were to do so." One key to a speedy resolution with Iran could be China, Altman said, which is Iran's biggest customer and likely has more influence on it than any other country. That puts a spotlight on Trump's meeting with China's Xi Jinping scheduled for next month. Do you have a news tip for Investopedia reporters? Please email us at tips@investopedia.com

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