What oil, stocks and bonds are telling us about the Iran conflict and how long it might last
Dr Daniele D’Alvia wrote for The Conversation about how oil, stocks and bonds might indicate the direction of the conflict between the US, Israel and Iran.
"When a conflict escalates, financial markets respond within minutes. That reaction is not just panic or speculation – it is a kind of collective judgement about what might happen next.
The conflict between the US, Israel and Iran, which started on Saturday, triggered a sharp jump in oil prices when Asian markets opened on Monday (rising by as much as 13% amid fears of supply disruption). Major Gulf indices fell steeply, and in some cases trading was suspended amid volatility.
At the same time, investors moved into so-called “safe-haven” assets. Gold prices rose, and demand increased for traditionally defensive currencies such as the US dollar and Swiss franc."
Dr Daniele D'Alvia is Lecturer in Banking and Finance Law at Queen Mary University of London. Read his full article on The Conversation.