Photo: AP/Vahid Salemi
So, what happens if war breaks out in Iran? Well, most would agree that oil prices would spike and risk assets like stocks would sell off.However, Art Cashin thinks all that is understating it.
In an interview with King World News, Cashin elaborates:
When asked how markets would react to a war in Iran, Cashin replied, “No one can fully know. The concern is that you would see a massive spike in oil. Secondarily, you might see the traditional flight to safety. If so, that might mean a huge rush into dollars and given the correlation we’ve seen with rises in the dollar and selloffs in stocks, you could not rule out a 1,000 point move in a day. That is why traders are watching it very, very warily.”