Investors are expecting Donald Trump to back down in the war with Iran – but what if he doesn’t?

Trading data on display at the Taiwan Stock Exchange. Asian markets, many based in countries heavily reliant on imported energy, were battered after oil price spikes following attacks on Iran. Photograph: Ann Wang/Reuters

Investors over the past year have learned that Donald Trump has a boundless capacity to quickly reverse course in the face of acute political or market pressures.

But a week since the United States and Israel launched missile strikes on Iran, there are fears the war could morph into a protracted conflict.