The geopolitical situation in Israel/Gaza along with the Russia Ukraine (and China/Taiwan), are risk events that could upset apple carts in 2024.
In Israel, risks come from Iran's involvement, supply shocks from the Houthi terrorism in the Red Sea, and the general escalation of hatred as a result of the polarizing war can bring about all sorts of implications - most not good. So far, the markets are taking it all in stride but the longer it goes on, the greater the chance for some market-related issues including sharply higher oil, higher inflation, lower stocks, etc.
The White House National Security adviser Sullivan is out with some comments.
- There have been too many civilian casualties in Gaza.
- There will be a post-conflict Gaza; no reoccupation of Gaza.
- The U.S. will not stop working toward a two-state solution.
- We do not want to see an Iran with nuclear weapons.
- The Iran attack was another example of Iran's destabilizing behavior in the region.
- National Security Adviser Sullivan is meeting on Thursday with families of hostages being held by unspecified groups
- Monitoring Iran-Pakistan clashes and do not want to see escalation.
