Iran war escalation wakes markets up to risks of deeper economic pain

Reassessment of the risk of deeper economic damage from the war in Iran is prompting broad selling across government bonds, equities and gold, raising fears of a larger market dislocation. The resultant risk-off flows increase systemic vulnerability and heighten near-term volatility for multi-asset portfolios.

Analysis

Reassessment of the risk of deeper economic damage from the war in Iran is prompting broad selling across government bonds, equities and gold, raising fears of a larger market dislocation. The resultant risk-off flows increase systemic vulnerability and heighten near-term volatility for multi-asset portfolios.