Markets are not reacting to a typical geopolitical headline. They are attempting to price a systemic disruption to the infrastructure that underpins the global economy.

The escalation surrounding Iran and the effective disruption of traffic through the Strait of Hormuz has reintroduced a reality that financial markets periodically forget: the digital and financial economy ultimately rests on physical systems - shipping lanes, pipelines, refineries, energy flows, and industrial supply chains.

This week’s events have forced markets to confront that depende...