Goldman Sachs‘ Chairman and CEO David Solomon said financial markets have had a surprisingly “benign” reaction to the Iran war, as the conflict enters its fifth day.

The Goldman chief spoke at the Australian Financial Review Business Summit on Tuesday as investors primarily monitored oil prices after Iran said the Strait of Hormuz had been shut and any vessel passing through would be targeted.

“I’m actually surprised,” Solomon said at the event. “I think the market reaction has been more benign, given the magnitude of this, than you might think.”

U.S. stocks have been volatile over the past few days and closed lower again on Tuesday. The Dow Jones Industrial Average was down 0.83%, the S&P 500 slipped 0.94%, while the Nasdaq Composite shed 1.02%. U.S. stock futures are set to open lower on Wednesday.

“I think it’s going to take a couple of weeks for markets to really digest the implications of what’s happened both in the short term or in the medium term,” he said.

Meanwhile, U.S. Treasury yields have been rising, defying the typical safe-haven playbook. During geopolitical conflicts, investors usually flock to bonds, pushing prices up and yields down. This time, however, bond prices are falling and yields are climbing, as investors worry that higher energy prices could stoke inflation and keep interest rates elevated for longer.

“Does this become a more prolonged thing? Does it start to filter through to energy supply chains? Does it have other impacts that affect consumer sentiments [and] consumer behaviors in different parts of the world?” Solomon said. “Those are the things that I think you have to watch, and you don’t have enough information or data at this point to be clear.”

Oil prices were calmer at the end of Tuesday’s session after Trump said the U.S. would provide insurance to tankers in the Persian Gulf to get maritime traffic moving through the Strait of Hormuz, one of the world’s most important oil choke points.

International benchmark Brent crude futures with May delivery rose 2.7% to trade at $83.58 per barrel on Wednesday, while U.S. West Texas Intermediate futures with April climbed 2.3% to reach $76.26.

Energy strategists have warned that oil prices could surge above $100 per barrel if the Strait of Hormuz is closed for a prolonged period.

Trump said on Tuesday that the war with Iran may result in “high oil prices for a little while,” but predicted prices will be lower after the conflict subsides.

“The one thing that happens for sure whenever you have an event like this is people want a higher risk premium for any kind of risk asset they’re in, and so people start repricing things at the margin. And certainly we’re seeing that,” Solomon said.