Equity and commodity markets reacted Friday to the escalation of tensions in the Middle East after a U.S. military drone strike took out Iran’s top military commander. NDSU Extension Crops Marketing Specialist Frayne Olson says markets don’t like uncertainty so, it’s likely this is just a short-term or knee jerk reaction.
He says traders are concerned about what the incident means for world economic growth and how that might impact global trade relations or the demand for U.S. commodities.
Olson says while attitudes about the agricultural markets were quite positive to start the new year, this incident weighs on that sentiment.
Olson doesn’t expect tensions to have an impact on the U.S. China deal signing as the two countries have agreed to leave politics out of those discussions.
