Tensions surrounding the US and Iran have abated in the last day or so, as both countries emphasised they are not seeking war. After some skirmishes, it seems that the aim of both the US and Iran is de-escalation, which was reflected by higher stock prices. In fact, the MSCI All-Country World Equity Index is up for the year and the NASDAQ has recorded another all-time high.
Recent events in the Middle East are a reminder, however, that the situation remains unstable, and that this will not change anytime soon, leaving room for sudden spikes of political volatility going forward.
