Gulf countries scramble to intercept missiles hours into U.S.-Iran ceasefire agreement

Multiple Middle Eastern countries reported incoming ballistic missiles and drones from Iran on Wednesday, mere hours after the U.S. and Iran announced a two-week ceasefire. The strikes increase near-term geopolitical tail risk, are likely to prompt risk-off flows and higher regional asset volatility, and could exert upward pressure on oil prices and related markets.

Analysis

Multiple Middle Eastern countries reported incoming ballistic missiles and drones from Iran on Wednesday, mere hours after the U.S. and Iran announced a two-week ceasefire. The strikes increase near-term geopolitical tail risk, are likely to prompt risk-off flows and higher regional asset volatility, and could exert upward pressure on oil prices and related markets.