Grace period for markets has ended as hopes of Middle East war staying controlled fade: Expert

CSIS analyst Clayton Seigle warns markets are scrambling as talk of 'unconditional surrender' and the prospect of refineries, storage terminals and offshore facilities coming into the direct line of fire imply the crisis will be prolonged. Expect an elevated geopolitical risk premium that pressures energy supply, could push oil and gas volatility higher, and drive risk-off positioning across supply-chain–exposed sectors until escalation eases.

Analysis

CSIS analyst Clayton Seigle warns markets are scrambling as talk of 'unconditional surrender' and the prospect of refineries, storage terminals and offshore facilities coming into the direct line of fire imply the crisis will be prolonged. Expect an elevated geopolitical risk premium that pressures energy supply, could push oil and gas volatility higher, and drive risk-off positioning across supply-chain–exposed sectors until escalation eases.