10 Mar The impact of the US/Iran war on economies and markets – Q and A
Key Points:
- Uncertainty around the duration of the US/Israel war with Iran has intensified with oil prices spiking to $US119/barrel only to then plunge as President Trump hinted that the war may be close to over. This is in turn driving big gyrations in investment markets.
- While a limited war remains more likely than a long war, it could still push oil prices higher & shares lower in the near term. Trump may be getting close to an off ramp though.
- For the RBA, there is a strong case to wait till May on rates as the boost to inflation could prove temporary.
