Investors are expecting Donald Trump to back down in the war with Iran – but what if he doesn’t?

Investors are anticipating that Donald Trump will de-escalate the conflict with Iran, based on his past behavior of reversing course when facing political or market pressure. However, economists are warning that this expectation may be complacent. Recent missile strikes by the United States and Israel on Iran have raised concerns that the conflict could escalate into a protracted war in the Middle East. The market's assumption of a short conflict may not be accurate, considering the potential for a drawn-out engagement. The article highlights the uncertainty surrounding Trump's actions and the potential for a longer, more impactful conflict than investors currently foresee.