Iran war volatility strains trading in world's biggest markets

The war in Iran has sparked market-wide chaos, leaving investors and market makers reluctant to take on risk and reducing liquidity. Trading has become harder and costlier, with wider spreads and lower market-making capacity, a dynamic that regulators are monitoring closely. Expect elevated volatility and continued risk-off positioning until geopolitical clarity improves.

Analysis

The war in Iran has sparked market-wide chaos, leaving investors and market makers reluctant to take on risk and reducing liquidity. Trading has become harder and costlier, with wider spreads and lower market-making capacity, a dynamic that regulators are monitoring closely. Expect elevated volatility and continued risk-off positioning until geopolitical clarity improves.