The ongoing conflict between the US and Iran has entered its second week, with escalating military posturing and diplomatic tensions. Key developments include Iranian missile strikes on US bases in Iraq and retaliatory US drone attacks on Iranian positions. The situation remains volatile as both sides exchange threats, raising fears of a broader regional war. Analysts warn that prolonged hostilities could disrupt global oil supplies, given Iran's strategic role in the Persian Gulf. Markets are reacting to heightened geopolitical risks, with oil prices surging to multi-month highs and the US dollar showing mixed performance. Traders are closely monitoring military movements and statements from Washington and Tehran. The conflict's impact on global trade routes and energy markets could trigger volatility in equities, commodities, and currency pairs. Central banks may face pressure to adjust monetary policies if inflation accelerates due to oil price shocks. For Gulf investors, the proximity of the conflict poses direct risks to regional stability and economic growth. Saudi Arabia and other Gulf states may need to reassess their energy strategies amid potential supply disruptions. Investors should watch for further military escalation, sanctions developments, and shifts in OPEC+ production policies. The US presidential election timeline also adds uncertainty, as Trump's foreign policy decisions could influence the conflict's trajectory.

Read full article from source ↗