Concerns are mounting among global investors regarding a potential military conflict with Iran, framed as a significant looming shock to the world economy. Market participants are increasingly questioning the potential magnitude and duration of such a geopolitical disruption on supply chains and market stability. A conflict in the region would likely trigger massive supply disruptions, particularly affecting oil transit through the Strait of Hormuz. Analysts anticipate a sharp spike in energy prices, impacting benchmarks like Brent and WTI, while triggering a broad risk-off sentiment across global boards. This environment is expected to weigh heavily on equity markets such as the SPY, while boosting safe-haven assets including Gold (XAU/USD) and the Japanese Yen (USD/JPY).
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