Uncertainty about Iran war duration forcing traders to look at 2022 Russia-Ukraine invasion as market guide for gas/oil prices, bonds, stocks, and dollar.
Reporter/Narrator
Energy prices most impacted, higher prices could trigger inflation and hurt growth, bad for stocks and bonds.
Reporter/Narrator
Fear and uncertainty causing investors to rush to dollar safety, dollar rose sharply after Russia invaded Ukraine and has risen sharply again after US/Israel attacked Iran.
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JP Morgan drew parallels to 2022, noting retail investors avoided selling stocks for a month after Russian invasion but then offloaded equities and bonds, suggesting biggest market reactions may still be ahead.
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Goldman Sachs chairman David Solomon said it will take weeks to understand more about the situation, but market reaction so far has been benign.
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David Solomon
I don't think people are being complacent. Market participants are looking and trying to say how is this going to play out? What's the endgame?
How much history will repeat itself is unclear, but markets are still on edge with main concern being extended Middle East conflict triggering inflation shock rippling across world.