WS #15139
Geopolitical risks remain elevated as the US military completes its withdrawal of 2,500 personnel from Iraq, a move marked by a national holiday in Iraq and a security incident involving Prime Minister Netanyahu's flight. The ongoing Iran war and high borrowing costs (10-year Treasury above 5%) contrast sharply with political rhetoric, creating a volatile backdrop for markets. These tensions contribute to the 'worst quarter' narrative in global bonds and add a risk premium to energy and shipping assets, limiting the upside of the equity rally driven by inflation data.
Geopolitical Tensions
Geopolitical risks remain elevated as the US military completes its withdrawal of 2,500 personnel from Iraq, a move marked by a national holiday in Iraq and a security incident involving Prime Minister Netanyahu's flight. The ongoing Iran war and high borrowing costs (10-year Treasury above 5%) contrast sharply with political rhetoric, creating a volatile backdrop for markets. These tensions contribute to the 'worst quarter' narrative in global bonds and add a risk premium to energy and shipping assets, limiting the upside of the equity rally driven by inflation data.