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The Guardian - UK

World

Richard Partington

‘The stakes are enormous’: how a prolonged Iran war could shock the global economy

Donald Trump United States Iran Oil Economy Inflation Hormuz Ukraine Barclays Société Générale

Red cap reading ‘make gas expensive again’ — Donald Trump’s comments about the Iran have induced a ‘fog of war’, economists said Composite: Guardian Design

In the days after the US and Israel first bombed Iran, financial markets bet the economic fallout from Donald Trump’s “little excursion” in the Middle East would be short-lived.

“There are risks from higher oil prices longer term. But this is a tail risk,” one US-based fund manager said after the airstrike killing Iran’s supreme leader, Ayatollah Ali Khamenei. “History has shown time and time again that geopolitical flare-ups like this tend to be short-lived. This one should prove to be no exception.’’

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