Investors are expecting Donald Trump to back down in the war with Iran – but what if he doesn’t?

<p>Global markets have become inured to the US president’s posturing over the past year, but economists warn they may be ‘a little bit complacent’ in anticipating a short conflict in the Middle East</p><p>Investors over the past year have learned that <a href="https://www.theguardian.com/us-news/donaldtrump">Donald Trump</a> has a boundless capacity to quickly reverse course in the face of acute political or market pressures.</p><p>But a week since the United States and Israel launched missile strikes on Iran, there are fears the war could morph into a protracted conflict.</p><p>Patrick Commins is Guardian Australia’s economics editor</p> <a href="https://www.theguardian.com/business/2026/mar/06/investors-are-expecting-donald-trump-to-back-down-in-the-war-with-iran-but-what-if-he-doesnt">Continue reading...</a>