The problem isn’t war between Iran and USA. The problem is Iran has allies sworn to defend them, unlike Iraq in the early 2000’s. This isn’t going to be a 1v1 where the US can stomp their smaller enemy, unless their allies pussy out. On the other hand, major periods of conflict can have more lasting effects on the economy and the stock market. One of the most harmful economic effects of war is a supply shock. A major shock in the supply of goods or labor can severely impact economic productivity. As geopolitical turmoil ratchets higher in the Middle East, a war between the U.S. and Iran could have serious implications for markets. What a US-Iran war could mean for world markets Home U.S. airstrikes in Iraq have killed one of Iran's most powerful generals and the markets reacted. Looking back on history, the relationship between geopolitical crises and the stock market is not While war drums beat in the Middle East, there was a sense of calm on Wall Street. The stock market opened lower, but indexes bounced back and climbed.
As President Donald Trump’s administration ratchets up tensions with Iran, the world must now reckon with the prospect of a “confrontation from hell” between the two countries. For now, both the United States and Iran say they do not want a war. Yet, step by inexorable step, they are moving onto a collision course.
But the most fascinating example of the connection between a military conflict and the capital market was the Gulf War. The TA-100 dropped about 20% in the first seven trading days after Iraq invaded Kuwait in August 1990. As President Donald Trump’s administration ratchets up tensions with Iran, the world must now reckon with the prospect of a “confrontation from hell” between the two countries. For now, both the United States and Iran say they do not want a war. Yet, step by inexorable step, they are moving onto a collision course. The problem isn’t war between Iran and USA. The problem is Iran has allies sworn to defend them, unlike Iraq in the early 2000’s. This isn’t going to be a 1v1 where the US can stomp their smaller enemy, unless their allies pussy out. On the other hand, major periods of conflict can have more lasting effects on the economy and the stock market. One of the most harmful economic effects of war is a supply shock. A major shock in the supply of goods or labor can severely impact economic productivity. As geopolitical turmoil ratchets higher in the Middle East, a war between the U.S. and Iran could have serious implications for markets. What a US-Iran war could mean for world markets Home
Jan 5, 2020 Why oil could hit $80 even without a 'full-blown' U.S.-Iran war Between 1983 and 2019, the stock-market index climbed nearly 23% after one
Jan 5, 2020 And as the Pacific War campaign was getting started in the spring of 1942, the stock market set its final bottom of the Great Depression era.
