Markets appear to shrug off Iran strikes

Global markets slipped but remained broadly stable in the wake of the US attacks on Iran. Oil prices rose around 2% before settling, while key US and European indexes fell fractionally.

Investors’ relative calm is based on the expectation of a short conflict, one analyst told The Associated Press: “One big hit by the Americans… then [back to] business as usual.” A serious response by Iran, such as closing the vital Strait of Hormuz would change the calculus, but the US secretary of state said such a move would be “economic suicide.” Still, ING analysts forecast that, under a blockade, oil — currently around $75 a barrel — could rise to $120, or even $150.