Geopolitical tensions threaten global economic stability

The ongoing conflict involving Iran has inflicted significant human and financial losses, destabilizing the global economy. Russia and Iran are emerging as unexpected beneficiaries of the situation at the Strait of Hormuz. A prolonged conflict could compel the Federal Reserve to increase interest rates rather than lower them, further impacting economic recovery. Additionally, the recent attacks have complicated potential normalization efforts between Saudi Arabia and Israel, adding another layer of geopolitical uncertainty.