Middle East Conflict: Central Bank Forecast Changes

Escalation between the U.S. and Iran, including military exchanges and confrontational rhetoric, has triggered a broad sell-off in global equities, most acute in Asia given high exposure to Middle Eastern energy. Expect continued risk-off flows, elevated volatility, and upside pressure on oil and other energy-related commodities; monitor Asian equity indices and safe-haven assets for further stress.

Analysis

Escalation between the U.S. and Iran, including military exchanges and confrontational rhetoric, has triggered a broad sell-off in global equities, most acute in Asia given high exposure to Middle Eastern energy. Expect continued risk-off flows, elevated volatility, and upside pressure on oil and other energy-related commodities; monitor Asian equity indices and safe-haven assets for further stress.