Former U.S. Treasury Secretary Lawrence Summers believes markets are far less reactive to geopolitical conflict than many expect, citing the recent example of flaring tensions in Iran.
What Happened: On Thursday, Summers posted on X, discussing his recent Bloomberg interview where he addressed the market’s response to the flare-up in the Middle East.
Despite the gravity of the situation, including Israeli strikes on Iranian infrastructure and fears of broader escalation, financial markets have remained largely resilient. Summers says this is because, “geopolitics are much less significant for markets than geopolitical people think they should be.”
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His comments come amid equity markets remaining remarkably stable amid the nearly two-week-long crisis involving Iran, Israel and …