Iran war splits global markets into clear winners and losers
The ongoing Iran war has created significant disparities in global markets, with high oil prices causing inflation concerns and currency depreciation in some Asian nations. Conversely, the U.S. dollar and certain stock markets have thrived, buoyed by safe-haven demand and optimism surrounding AI advancements. The conflict's impact on energy prices is also straining economies reliant on imports, particularly in Europe and Asia.
- ▪Oil prices have surged by approximately 40 percent since the start of the Iran war, affecting inflation and interest rates globally.
- ▪The U.S. dollar has appreciated by 1.5 percent against major currencies, benefiting from its status as a safe haven amid the conflict.
- ▪Asian currencies have suffered significantly, with countries like India and Indonesia experiencing record lows against the dollar due to rising oil costs.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThree months since the Iran war began, persistently high oil prices have policymakers grappling with renewed inflation fears, while sliding currencies are a headache for some Asian countries.But the conflict has boosted other assets, especially oil, and the dollar’s credentials as a safe-haven.Here’s a look at some stand-out winners and losers.OIL’S WIDER IMPACTOil’s roughly 40 per cent jump has upended the outlook for inflation and interest rates. On the physical market, crude prices are well above US$100 a barrel and, at one point in early April, were nearly double what they were pre-war.
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