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The article highlights concerns that former U.S. President Donald Trump's aggressive stance toward Iran could escalate geopolitical tensions, leading to higher global commodity prices, particularly oil. While Trump has campaigned on promises of affordability, his administration's policies historically contributed to market volatility. Analysts warn that renewed hostilities in the Persian Gulf could disrupt oil supplies, pushing energy prices upward and increasing inflationary pressures worldwide. For markets, rising oil prices typically benefit energy sector stocks and producers but hurt consumers and industries reliant on cheaper energy. Traders are closely monitoring U.S.-Iran relations as a key risk factor, with potential impacts on the U.S. dollar, which often inverses with oil prices. Central banks may face renewed inflationary pressures, complicating monetary policy decisions. MENA investors should watch for spillover effects on regional energy markets, given the Gulf's strategic location near Iran. Higher oil prices could boost revenues for oil-exporting nations but increase costs for importers. Traders are advised to hedge against geopolitical risks and monitor U.S. policy shifts under Trump's potential return to the White House.
