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Citigroup CEO Jane Fraser has highlighted that while the global economy is showing tremendous resiliency, significant geopolitical risks remain on the horizon. Fraser warned that financial markets have yet to fully understand or anticipate the second and third-order effects of the ongoing conflict between the U.S. and Iran. According to the CEO, investors may be underestimating the systemic risks and indirect economic disruptions caused by prolonged hostilities and regional blockades. Her comments serve as a cautionary note against complacency, suggesting that hidden risks could still destabilize international trade and energy markets. Although the global economy has remained robust, Fraser emphasized that the long-term consequences of such conflicts are often non-linear. Market participants are now weighing these warnings against current valuation levels in the banking and energy sectors.
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