Iran war shows markets can’t ignore every geopolitical shock

For sheer escalatory potential, look no further than the speed at which the six-day-old war in Iran has drawn in countries across the Middle East, causing the biggest energy shock since Russia’s full-scale invasion of Ukraine in 2022. While the long-term consequences of military action by the United States and Israel against Iran are unpredictable, worst-case scenarios for the global economy and markets have begun to unfold. Although the least important thing about any war is how it affects...

For sheer escalatory potential, look no further than the speed at which the six-day-old war in Iran has drawn in countries across the Middle East, causing the biggest energy shock since Russia’s full-scale invasion of Ukraine in 2022. While the long-term consequences of military action by the United States and Israel against Iran are unpredictable, worst-case scenarios for the global economy and markets have begun to unfold. Although the least important thing about any war is how it affects...