Hundreds are dead already, 500,000 people are displaced, and destruction of assets and resources is large and growing. The media now report that that war could escalate much further, last for weeks or even months, and involve large numbers of ground forces. By evacuating thousands of American citizens from Lebanon, the U.S. is signaling that it expects this war get worse. President Bush actually appears to be cheer leading this war by repeatedly affirming Israel’s right to defend itself and refusing to to do anything to stop it. Hezbollah and Hamas links with Syria and Iran create the possibility of a broadening regional war capable of disrupting oil supplies. Iran threatens to retaliate against any attack on Syria, use oil as a weapon, and block the vital oil supply route at the Strait of Hormuz.
Apart from the massive human toll, all this makes for a very bad witch’s brew of market risk. Normal trading guidelines are suspended. Control your risk exposure. This market can do anything. Good luck.
