June 23, 2025

A dismantling of the Axis of Resistance would be a bullish development for the global economy. While the future path of Iran is an uncertain one, an environment that fosters economic and political freedom in Iran is not out of the realm of possibilities. The success of the Israeli and US operation increase the likelihood of success of an Abraham Accord. A bullish outcome for the Gulf Countries and the Middle East. The agreement would reduce uncertainty and as peace and trade deals are implemented property rights are likely to increase. The region could enjoy a bout of political and economic prosperity. Globally , the US will increase its influence in the region and the world. To the extent that Iran would not be supplying arms, Russia’s war with the Ukrainians will become more difficult and expensive. Russia will not have access to the Iranian arms and drones. Then there is the possibility that the US will increase its supply of arms to Ukraine. Russia would be a major loser while the NATO countries will be big winners. With the Iranian nuclear program dismantled, there would no longer be a need to embargo Iranian oil. China and India will no longer be getting oil at a below market rate. China and India would cease to benefit. Then there is the fact that the Israel and US success highlighted the superiority of US arms. That combined with the US willingness to use the arms in support of an ally should temper China’s short term Taiwan ambitions while simultaneously reassuring our pacific region allies. Our view is that these events will tilt the balance of power in favor of the west. A bullish development for the global economy consistent with recent stock market behavior.

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format