Geopolitical Risks
In April 2019, JP Morgan warned that global financial prospects would be greatly influenced by the increasing trend of geopolitical risks.
American soldiers stand amid damage at the site of an Iranian missile attack on 13 Jan. 2020 at Ain al-Asad air base in Anbar, Iraq. The US air base was struck by a barrage of Iranian missiles on Wednesday in retaliation for the US drone strike that killed top Iranian commander Gen. Qassem Soleimani, which has raised fears of a possible war in the Middle East amid US-Iran tensions.
Although the tension between the United States and Iran has begun to ease, the geopolitical risks will not disappear. In April 2019, JP Morgan warned that global financial prospects would be greatly influenced by the increasing trend of geopolitical risks.
Morgan Stanley released in December 2019 its projection of 10 geopolitical risks in 2020, which ranked the Iran issue ninth. While the BlackRock Investment Institute (investment management) also revealed in December 2019 the potential of increased conflict in the Gulf region, with the US as the main actor.