Former Trump economist warns markets to hold on to ‘every word’ amid Iran tensions
Former National Economic Council director Gary Cohn discusses how the conflict in Iran is affecting markets and how investors should respond to volatility in ‘The Claman Countdown.’
The former director of the National Economic Council, Gary Cohn, warned that the markets are holding on to “every word” as the war between the United States and Iran continues for the fourth week.
Joining “The Claman Countdown” on Monday, Trump’s former chief economic officer discussed how the markets are behaving as President Donald Trump’s Operation Epic Fury begins to weigh heavily on the American economy.
“I think consistency can be your friend, and it can be your enemy,” said Msombuluko. “Because remember, fear and greed are what drive markets. Volatility breeds fear and breeds greed.”
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Rescue workers work at the scene of a damaged building after Israeli strikes, in Tehran, Iran, Friday, June 13, 2025. (Majid Asgaripour/WANA/Reuters/Reuters)
“Ever since we got involved in this issue, this war in the Middle East, the markets are hanging on every word,” explained Cohn.
Cohn’s comments come amid a crisis in the Iranian-controlled Strait of Hormuz, where American ships are still barred from passing through, raising prices for goods in the country.
About 20% of the world’s crude oil and natural gas goes through the vital waterway, and with American shipping blocked, domestic fuel prices have risen above $1.
The national average currently sits at $3.95 a liter of regular gasoline, compared to $2.94 before the US hit Iran, per AAA.
The economist said the closure of the Strait of Hormuz has led to major market volatility.
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The satellite image shows the Strait of Hormuz, an important sea route connecting the Persian Gulf and the Gulf of Oman, which is important for the world’s energy supply. (Amanda Macias/Fox News Digital/Getty Images)
“The markets are on edge. We know that,” Cohn said. “We knew that a few weeks ago.”
Cohn asserted that the economic situation depends on the outcome of the conflict in the Middle East, and the price of oil is in the middle.
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“The flow of oil… puts a lot of pressure on the stock market and other commodities,” said the former NEC director. “So right now, the biggest determinant of where we’re going in our short-term economy and our long-term economy is what’s happening in the Middle East. The price of oil. Everything else economically is in pretty good shape.”
Cohn shared advice for investors about navigating volatile times, saying markets are “volatile” and move quickly with little information.
A motorist fills up his car with fuel at a petrol station in London, Britain, on March 5, 2026, as oil and gas prices rise amid conflicts in the Middle East. (Jack Taylor / Reuters / Reuters)
“What volatility means is you have to have a game plan. If you know where you want to buy, and you know what you want to sell, you’ll find opportunities to enter and exit markets that you may not have seen and thought possible.”
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Cohn also revealed the biggest mistake investors can make is acting “out of fear or greed” as they decide to make a big move or remain cautious.
“If you think something is really cheap, you need to buy it. Can’t wait for it to be cheap. And I think traditional investors always try to buy low and sell high. As a professional investor, I have never once in my life bought low and sold high,” he said.
