Iran war will leave a long-term ‘scar’ on Wall Street, investors warn

Investors warn that a potential Iran conflict in 2026 would inflict lasting economic damage on U.S. financial markets, citing geopolitical instability as a primary risk factor. Market analysts predict prolonged volatility in equities, bonds, and commodities if tensions escalate, with energy prices expected to surge amid supply chain disruptions. Wall Street firms are advising clients to diversify portfolios into defensive assets like gold and Treasury bonds to mitigate exposure to Middle East-driven market shocks. The Federal Reserve may delay interest rate cuts to counter inflationary pressures from rising oil prices, complicating recovery efforts for already strained sectors. Long-term economic growth forecasts are being revised downward, with experts comparing the potential fallout to the 2008 financial crisis but with added geopolitical complexity.