Geopolitical Tensions on the Rise

Overview

The latest escalation in tensions between the U.S. and Iran, caused by an alleged Iranian attack on an oil tanker in the volatile Strait of Hormuz, adds to a growing list of geopolitical hotspots around the world. With an unpredictable U.S. president that hasn’t confronted a direct military threat and one might conclude it has the makings of a risky period ahead for financial markets. What does history reveal about the impact of geopolitical stress on economic growth and financial market performance? 

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