The U.S. House of Representatives rejected a war powers resolution aimed at limiting President Donald Trump's authority to take military action against Iran without congressional approval. This follows a similar rejection by the Senate earlier in the week, leaving Trump with broad discretion to respond to escalating tensions with Iran. The resolution sought to require presidential consultation with lawmakers before deploying armed forces, but failed to gain enough support in either chamber. The decision underscores deep political divisions in Washington over how to address Iran's regional activities and nuclear program. The rejection of the resolution could heighten geopolitical risks, particularly in energy markets, as any military escalation in the Persian Gulf could disrupt oil supplies. Traders may also monitor defense sector stocks and safe-haven assets like gold for volatility. The outcome reflects a lack of bipartisan consensus on foreign policy, which could lead to prolonged uncertainty for investors. Central banks and policymakers in oil-dependent economies may also reassess risk management strategies amid the heightened tension. For global markets, the focus will shift to potential retaliatory measures from Iran and the U.S. response. Energy prices, especially crude oil, are likely to remain sensitive to developments. Investors should watch for statements from OPEC and regional allies, as well as any shifts in U.S. sanctions against Iranian oil exports. The situation could also influence broader geopolitical risk indices and impact emerging market equities, particularly in the Middle East and Asia.

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