Markets May Be Underpricing Iran Risks, Bank of America Warns

Investors may be underestimating the extent to which the Iran war can trigger global economic turbulence, according to Bank of America Securities global economist Antonio Gabriel.

“While a quick resolution to the conflict is certainly a possibility, we view the conflict extending into the second quarter as an equally likely outcome, and a more protracted war cannot be ruled out,” Gabriel wrote in a Monday note. “However, markets seem to be pricing a largely transitory shock.”