While it is a terrible situation to be in, we know that the US has been involved in two of them at the same time. We are talking about the tensions between the US and Iran due to the US’ decision to strike on Iranian site killing its top commander named Suleimani.
However, you need not be reminded that the US is in a mess with China as well from the past 18 months and counting. Because of the trade war between the two countries that have reached an agreement but hasn’t been signed yet.
Now, it is strange to see that the analysts have to review the impact caused by these tensions instead of analyzing the market situation. Nonetheless, we are here to tell you what analysts think about the US-Iran and the US-China tensions.
As per a report from CNBC, one analyst thinks that US-Iran relations are a bigger threat for investors. He adds that the US-China tensions might be overshadowed due to these fresh tensions with Iran. And it is obvious as well because the US was almost in a war with Iran whereas there is no such threat in case of China.
Former British Diplomat Alastair Newton said that “there should be no doubt … that authorities will crack down if they feel that the regime is under serious threat.” and he added that “I actually think this (Iran) is going to be a more important issue for investors this year than China-U.S.,”.
He also mentions that Iranians will not want to talk with Donald Trump over an agreement and they would “hope that Donald Trump is defeated” so that “they have a different democratic party administration to deal with,”. He also mentions that the Iranian regime is known for “ruthlessly putting down protests” and he feels that they will do so again “if necessary.”