🚨 US–Iran Tensions: What It Could Mean for Markets
Tensions are increasing after reported US strikes on Iran, but Iran appears more isolated than ever. Outside of Russia, there are very few countries likely to stand firmly with Iran due to its long history of unstable partnerships.
📌 Quick Background
2014: Iran backed out of a major telecom deal with the US.
2021: After signing a massive $400B cooperation deal, Iran later shifted closer to India, even giving India operating rights at Chabahar Port, which directly competes with Pakistan’s Gwadar Port.
2023: Iran and Saudi Arabia restored ties, but Iran warned that any military attack could lead to missile strikes across the Gulf region.
💥 Even during regional conflicts, Iran and India have continued cooperation. As a result:
Investment into Iran has declined
Investment into Saudi Arabia has increased
⚠️ Iran’s main pressure tool remains its missile capability, but this doesn’t solve its deeper economic issues:
Currency has lost massive value over the past decade
Wealthy elites are quietly moving money to Western countries
🌍 For traders and investors:
Rising geopolitical risk can affect oil prices, currencies, regional markets, and global risk sentiment. This could also influence safe-haven assets and crypto markets.
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