Implications of the Recent Military Escalation
Oil Price Forecasts:
Oil prices are expected to rise above $95 per barrel if Iran targets tankers in the Strait of Hormuz (through which a third of global oil exports pass).
Any Iranian strike on Aramco or Gulf facilities will quickly raise prices to $110-120, as happened in the "Abqaiq" attack in 2019.
Stock Markets:
American markets may temporarily decline due to concerns about military expansion, but defense industries (Raytheon, Lockheed Martin) will rise.
Gold and the Japanese yen will turn into safe havens, with the price of gold rising to $3,500 per ounce if the conflict expands.
