Global Markets React to US Policy Shifts and Iran Tensions

The global market is reacting to a series of significant developments in US policy and tensions with Iran. The US Supreme Court's ruling against President Trump's use of emergency powers to set reciprocal trade duties has led to a decline in the dollar, causing copper prices to rise for the second day. According to Amy Gower, Metals & Mining Commodities Strategist at Morgan Stanley, copper is likely to remain well-supported due to the uncertainty surrounding US tariff policy and its impact on broader markets.

In an interview with Bloomberg's Horizons Middle East and Africa anchor Joumanna Bercetche, Gower noted that the decline in the dollar has driven up copper prices. This development is not isolated, as gold and silver have also traded higher due to tariff uncertainty. The US administration has rolled out an alternative 15% global levy, which has further contributed to market uncertainty.

Meanwhile, the Gulf Cooperation Council (GCC) continues to outperform many global markets. Jad Ellawn, Managing Partner & Regional Head of Middle East at Brookfield, one of the largest direct investors in the Middle East, notes that the region is undergoing a structural transformation from oil-based economies to more diversified economies. This transformation is creating scale across infrastructure, real estate, and private equity, making the GCC a significant long-term destination for investors.

However, tensions between the US and Iran are escalating, which could have a significant impact on global markets. US President Donald Trump is considering limited military strikes to pressure Iran into signing a new nuclear deal. Alan Eyre, Distinguished Diplomatic Fellow at the Middle East Institute and Former Senior US Diplomat, believes that the window for diplomatic talks is "70% closed." Eyre notes that bombing Iran may not have the desired effect, and the US has ramped up its military presence in the region.

The conflict between the US and Iran could have a significant impact on oil prices. Fereidun Fesharaki, FGE NexantECA Chairman Emeritus, believes that an open conflict could push prices into the $75-$90 per barrel range, depending on export disruptions. This development could have far-reaching consequences for global markets.

In the midst of these developments, some are wondering who the real winners are from Trump's tariff setback. Haslinda Amin's "Insight with Haslinda Amin" program explores this question, featuring in-depth interviews and analysis from prominent leaders in business, finance, politics, and culture.

As the global market continues to react to these developments, it is clear that the interplay between US policy shifts and tensions with Iran will have significant consequences for investors and economies around the world.