Mohammed El-Erian highlights the possibility of Israeli retaliation against Iran, which could escalate the conflict and involve other countries like Syria, Lebanon, Ukraine, and Russia. El-Erian emphasizes that the market is currently treating the conflict as a contained issue, but advises incorporating a higher premium into market expectations due to geopolitical tensions, insufficient growth, and potential policy mistakes.
Peter Zeihan highlights ongoing negotiations between Saudi Arabia and Israel regarding normalization, with the younger generation of Saudi leaders showing less concern for the Palestinian cause. The outcome of these negotiations could have significant geopolitical implications, particularly if Saudi Arabia aligns with Israel.
