Question

US president Donald Trump made a successful assassination of Iranian General Qassem Suleimani. As a result, citizens feared that War is a great possibility because of what happened. Investments and businesses pulled out of US and Iran due to stockmarkets downfall. Why do u think this happened? EXPLAIN.

Answer 1

Answer:

Financial markets tend to respond by virtue of macroeconomic and political events that occur on a day-to-day basis in the nations with the largest presence in the world economy. Thus, events such as presidential changes, political scandals or bilateral conflicts have a wide interference in the development of financial investments.

Therefore, the fact that a bilateral conflict between the USA and Iran begins, implies that the investments and businesses that are developing in these countries may have a negative development. For this reason, financial investors, after the death of Qassem Suleimani, decided to exit their investments in these countries in order to avoid eventual economic losses.