economy
Stocks, bonds and commodities: How global markets have traded the Iran war
Assets across the board have been turbulent in the month since the war began.
TL;DR
- Global stocks have experienced a significant sell-off in the five weeks of the U.S.-Iran war, with major averages on Wall Street and international indices falling.
- Concerns about the war's impact on energy and inflation are weighing on markets, particularly in Europe and Asia, leading to fears of stagflation.
- Government borrowing costs are rising as bond yields increase, with central banks potentially shifting towards hawkish monetary policy.
- The U.S. dollar has strengthened against major rivals, partly due to energy-driven stagflation risks.
- Metals markets have been volatile, with gold experiencing its worst monthly performance since 2008, though some maintain a bullish outlook.
- The energy market is at the center of the jitters, with oil and gas prices skyrocketing due to disruptions in the Strait of Hormuz.