Calm VIX Hides Rising Tail Risk: SKEW Rises, VVIX Jumps, Markets Digest Geopolitics & Banks

A busy morning of economic data and earnings reports failed to provide a strong enough catalyst for equities. Escalating protests in Iran prompted President Trump’s threats of military action and a 25% tariff on countries trading with Tehran (sparking swift Chinese condemnation and trade truce risks). Markets traded broadly lower after an initial CPI-driven bid…