Bank of America Says Market May Be Underestimating Middle East War Impact; Global Economic Risks May Intensify

GateUser-bd883c58 · 2026-03-21T17:25:40+00:00

Bank of America Securities economists stated that investors may be underestimating the impact of the Israel-Hamas war on the global economy, viewing it as a short-term shock, but the duration and effects of the war remain uncertain, and risks could intensify.

GateUser-bd883c58

2026-03-21 17:25:40

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Bank of America says the market may be underestimating the impact of the Middle East war, and global economic risks could intensify.
Caixin, March 16 — Antonio Gabriel, a global economist at Bank of America Securities, stated that investors may be underestimating the potential disruption the US-Israel-Iran war could cause to the global economy. Although the market generally views the impact of the conflict as temporary, there is still significant uncertainty regarding the duration and scope of the war.
In a report released on Monday, Gabriel noted that the possibility of a quick resolution remains, but the likelihood of the war continuing into the second quarter cannot be ignored, and even longer-term conflicts are not ruled out.
“Markets seem to be viewing this event as a brief shock, but we believe investors may be underestimating its potential risks.”

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