Iran-Israel War: How this will hurt your investment portfolio

financialexpress.com:

What impact the Israel-Iran war can have on your investment portfolio. Time and again, it has been observed that geopolitical tensions have far-reaching impacts on various asset classes, including equity, currency, crude oil and various other commodity prices. Amid heightened geopolitical risks, people usually realign their portfolios and often turn to perceived safe-haven assets.

Currently, the Middle East is undergoing another turmoil after Iran and Israel engaged in a military tussle. Iran attacked Israel with hundreds of drones and missiles and the former’s proxies launched attacks on Israeli positions. Iran said its attack on Israel was in response to a strike on its consular building in Syria.

Both Iran and Israel are strategically located on the world map and hold significance in global politics and economics. As tensions grow in the region, global financial markets have started showing signs of instability. If the military tussle escalates into a full-blown war between both these countries, it will not only further destabilize the Middle East region, which has already borne the brunt of the Israel-Hamas conflict for several months, but also have detrimental effects on global trade and economy.

Here, let’s take a look how the possible full-fledged war may impact the investment portfolio of a person who has invested in equity, currency, gold and other commodities.

Global stock markets are likely to experience knee-jerk reactions on the first trading session of the coming week on Monday as investors are concerned over the fallout from Iran’s military attack on Israel. Market experts fear a panic selling in the markets in reaction to growing geopolitical tensions.

It has to be seen how risk-averse investors react on