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Moody’s: Lasting US-Iran conflict would cause "broad economic, financial shock"

07 January 2020 12:05 (UTC +04:00)

As tensions rise in the Middle East, Moody’s warned on Monday that any sustained clashes could have global economic repercussions, APA-Economics reports citing CNBC.

“A lasting conflict would have wide-ranging implications through broad economic and financial shock that significantly worsen operating and financing conditions,” Moody’s senior analyst Alexander Perjessy wrote in a note to clients Monday.

“A protracted conflict would potentially have global repercussions, in particular through its effect on oil prices,” he added.

Perjessy said that the effects of ongoing tensions would hit the broader economy — not just the oil and banking sectors — as things like tourism in the Middle East, for instance, would be impacted.