Middle East war could tip the 'slowing' US economy into recession: Jake Oubina | Fox Business Video
Jake Oubina, a senior economist at Piper Sandler, discusses the potential impact of the ongoing conflict in the Middle East, specifically the missile attacks from Iran against Israel, on the US economy. He suggests that these developments could tip the already slowing US economy into recession due to increased geopolitical tensions leading to disruptions in markets, particularly in oil and trade.
Stock Forecasts
XLE
Negative
The current geopolitical tensions in the Middle East, particularly involving Iran and Israel, are likely to lead to increased oil prices due to concerns over supply disruptions. This could negatively impact the US economy by increasing inflation and slowing growth.
XLU
Positive
Investors should consider the defensive nature of utility stocks as economic uncertainty grows due to geopolitical risks. Utilities tend to perform better during economic downturns and could be a safer investment during this period.
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