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  • Newsweek

    The Cost of What Comes Next

    Jan 17, 2020 4 minutes
    by SAM HILL

    ROUND 1 OF U.S. VS. IRAN SEEMS to be over, and the effects on the world economy seem negligible. Relieved at what looks like Iran’s and President Donald Trump’s intentions not to escalate the conflict, world markets rallied. The Dow Jones Industrial Average, which began the day after Iran’s missile attacks on U.S. bases at 28,556, crept up to 28,637 just before the president’s remarks, then rose to 28,768 after he finished speaking. Both the S&P 500 and Nasdaq closed the day at record highs.

    That means markets believe the Iranian situation will not have a major negative effect on the world economy. At least for now. But whether markets

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