Trump Likely to Escalate War with Iran, Risks Stagflation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Economic Risk Warning: Renowned economist Roubini cautions that Trump may escalate the war with Iran, risking 1970s-style stagflation, despite market optimism about a resolution, indicating potential threats to economic growth and inflation.
- Military Escalation Expectations: Roubini predicts Trump will undertake military actions, including taking over Kharg Island and continuing bombings of Iranian military structures, which could raise oil prices in the short term but may also lead to improved geopolitical stability.
- Market Reaction Analysis: While Roubini believes economic growth will slow, he points out that markets are overly optimistic about Trump's desire to end the war swiftly, likely underestimating the tail risk of prolonged conflict leading to stagflation.
- Election Impact Assessment: Roubini emphasizes that if Trump opts to halt military actions now, he risks losing the election, thus he may choose to escalate, hoping for better electoral performance in the midterms.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 211.150
Low
158.00
Averages
176.95
High
206.00
Current: 211.150
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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