Possible instability predicted in international markets for coming week as Middle East-U.S tensions continue

After a tumultuous week in the international markets, following the escalation of tensions between the Middle East and the United States, investors and analysts are closely watching for any signs of instability in the week ahead. Ebrahim Deen, a Researcher at Afro-Middle East Centre, shared insights on the recent events and what could potentially unfold in the coming days. Deen expressed his views on the recent developments, highlighting that the current situation cannot be simply deemed as a victory for President Donald Trump. He emphasized the significance of considering the broader context, particularly referencing the Joint Comprehensive Plan of Action (JCPOA) that the U.S withdrew from in 2018. Despite the targeted strike that resulted in the death of an Iranian General, Deen noted that Iran could resort to more indirect and asymmetrical attacks through its proxies, signaling the potential for continued tensions. Reflecting on the historical animosity between the U.S and Iran, Deen acknowledged that the relationship has been marked by longstanding disputes and conflicts. Even with the possibility of a Democratic victory in the upcoming U.S election, which may lead to a return to diplomatic negotiations, the underlying tensions are expected to persist, contributing to regional instability. When discussing Iran's limited options in response to U.S actions, Deen remarked on the likelihood of indirect warfare rather than a direct military confrontation. Both Iran and the U.S have compelling reasons to avoid a full-scale conflict, considering the economic repercussions and domestic considerations. Despite the presence of significant military assets in the region, Deen suggested that a de-escalation of tensions could be anticipated in the near term. As market participants monitor the geopolitical developments closely, the potential impact on international markets remains a key concern. The uncertainty surrounding the geopolitical landscape, coupled with the interplay of economic factors, underscores the need for vigilance and strategic decision-making in the face of potential market fluctuations. Looking ahead, the coming week presents a critical juncture for investors, as they assess the implications of continued tensions between the Middle East and the U.S. The response of key stakeholders, including political leaders and international bodies, will also play a crucial role in shaping the trajectory of events and influencing market sentiment. In conclusion, while the recent escalation in tensions has rattled global markets, the prospect of a measured response from both sides offers a glimmer of hope for stability. As the situation continues to unfold, market participants will be closely monitoring developments and adjusting their strategies to navigate the evolving landscape of international relations and its impact on the financial markets.