Traders Look to Ukraine Conflict to Map Out Market Risks From Iran

Uncertainty about how long the conflict in Iran could last is forcing investors to look to recent history as a guide for markets.

Many are revisiting trades enacted after Russia’s 2022 invasion of Ukraine, betting that this week’s spike in energy prices will stoke inflation, sparking lasting strength in the dollar as well as weakness in bonds and stocks. While markets largely brushed off last year’s 12-day attacks on Iran by the US and Israel, investors are concerned this will run much longer.