Do you want to be positioning for a resolution to this and a reopening of the Strait of Hormuz?

We've had many attempted transitions where markets see good news and price in an off-ramp, and then are disappointed. You want to see clear concessions made by both sides before pricing that in as an equilibrium. More information is still necessary.

If we get concrete details and implementation, what is looking like an opportunity? What would you position into?

If we see actual concessions and de-escalation, it's likely we'll continue to see reward in the equity markets, as they have really downplayed this whole conflict in favor of the ongoing massive boom in investment. I'm not sure there's going to be a whole lot of additional support.

How does a potential resolution and continuation of the fall in oil prices affect the decision making for the Bank of Japan at the upcoming meeting?

Japan is in a special situation. Even before the conflict, we were at a critical juncture on the inflationary side. We've seen multi-year improvement in corporate governance and re-rating of firm valuations. If we do see resolution, it could be one reason to act sooner rather than later, since the BOJ is still in normalization mode and has hikes to deliver.

Is that going to support the yen? We've been hovering in this 155 to 160 level. Where do you see us going from here?

The yen is trading as a type of credibility indicator for the Bank of Japan. The market eventually expects the BOJ to deliver those hikes because it hasn't reached neutral yet. If there is any big disappointment and a sell-off in the yen because of this credibility disappointment, that could be rather damaging for Japan.