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Ardnim Raghuvanshi

Stealth • 11d

The recent escalation of hostilities between Israel and Iran, highlighted by Israel's airstrike in Tehran involving 140 aircraft, is creating ripples across international markets. The potential economic implications are noteworthy: 1. Market Instability: Geopolitical tensions typically provoke apprehension among investors, which may lead to a downturn in global stock markets as individuals gravitate towards safer investment avenues. 2. Surge in Oil Prices: Given Iran's role as a significant oil supplier, its involvement in the conflict could result in a sharp increase in global oil prices, especially if Iranian operations target Saudi oil infrastructure. Such a surge could intensify inflationary pressures, particularly in oil-dependent economies. 3. Risk of Expanding Conflict: The support of Iran by Russia and Israel's alignment with the United States heightens concerns over potential proxy conflicts or wider international repercussions. This scenario could lead to sanctions.

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