Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Kintanio with Sima Modi, David Faber, here at post-9 of the New York Stock Exchange.

Sarah Eisen has the morning off. Giving back some of the rally last couple days, although for the week,

major average is still enjoying the best performance since November of last year. S&P's up about 150 points since Friday night.

Ahead this hour, investors feeling a bit gloomy about the Iran war, but JPMorgan's David Kelly says the economy can probably handle it.

That recession will not come in 26.

He'll join us to make that case.

Apollo's Torsten Slocks with us.

We'll talk about how this fresh surge and energy prices might impact the inflation picture.

And former Morgan Stanley Asia Chairman Stephen Roach with us with a look at how the Iran war

has fundamentally shifted the U.S.-China relationship.

Let's start, though, with the latest on Iran and the president's speech last night.

Amund Javrish joins us from Washington.

Amen.

Yeah, good morning, David.

World governments have begun to wrestle with the question of what to do to reopen

the Strait of Hormuz after President Trump signaled last night that he believes it's not

his problem to deal with.

The UK today hosting diplomats from more than 40 countries in a virtual summit on the crucial waterway.

The United States not participating in that meeting, which UK Foreign Secretary Yvette Cooper

said would focus on ways to reopen the strait after Iran had hijacked it.

And separately, French President Emmanuel Macron said today it would be unrealistic to use military force to open the

strait, despite President Trump's suggestion last night that other countries should take it.

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