How Middle East War Backlash is Influencing Global Markets and InvestorsImpact of Middle East Conflict on Global Financial MarketsBy Vidya RanganathanLONDON, March 1 (Reuters) - From being just a fringe risk, conflict in the Middle East has become a top worry for investors unsettled by the prospect of a power struggle in Iran and a protracted regional war, with ramifications for everything from global trade to inflation. "Middle East tail risks have increased. "I’m not sure if buying US Treasuries here is a good trade, especially if oil prices spike and induce inflation, if this thing drags," he said. "We wouldn’t be surprised if any selloff in the S&P 500 on Monday morning turns into a rally, driven by expectations of lower oil prices once the latest Middle East war ends," said Ed Yardeni, president of New York-based Yardeni Research. Bond yields might fall due to both safe-haven demand and post-war prospects for lower oil prices," he said.

Source: The Guardian March 01, 2026 15:04 UTC