Global Markets 'Wait and Watch' US-Iran Tensions: Regime Change, Oil Risks Loom

• Global markets are in a 'wait and watch' mode, focusing on potential regime change in Iran and its impact on sanctioned oil supply, according to Prashant Paroda of Allspring Global Investments.
• A shift in Iran's leadership could reintroduce sanctioned oil to international markets, significantly altering global energy dynamics.
• Paroda describes the current geopolitical environment as a 'game of poker,' with economic leverage used as a tool; China used rare earths, and the US is solidifying its oil card.
• An India–US trade agreement is unlikely until Prime Minister Narendra Modi and US President Donald Trump meet face-to-face.
• While the direct economic impact of an India–US trade deal might be small, positive sentiment from such a deal could trigger a swift market rally, advising investors to stay invested.

Why It Matters: Global markets are cautiously observing US-Iran tensions for potential regime change and its oil supply implications.