Oliver Jones says middle east conflict not to affect in the long term
There is a history which suggests that the developments in the tensions between United States and Iran are not going to have an impact that is going to last on the stocks of United States as well as the safe havens and even oil as per the economist Oliver Jones.
Jones had said that there is a doubt that the tensions are going to play any significant roles in the deciding of the best and worst performing classes of assets in the year 2020 at least outside the middle east area.
Thus far, the trading action on Wednesday had seen a sharp rebound when it comes to the equities and the decline in the prices of gold and oil that was sharp. There are more indications that through the course of the year, the prediction of Jones might be coming out to be true.
The reaction being so small and short-lived maybe extremely typical of what is going to happen on the evidences of the other events that have increased the risks related to military action which involve the United Nations such as the missile tests of North Korea.
There was a surge in the prices of energy commodities as well as precious metals and there was a sinking in the equities which had been a response to the strikes which had killed the military leader Qaseem Soleimani and in retaliation the Iranians had struck the Iraqi military bases that had been hosting the troops of United States.
The impact of these conflicts is not always large enough to last and affect the economy and matter to the markets outside of the middle east for any length of time.