I recently took some time to explore the potential financial and economic impacts of the next stage of the Middle East War. By applying the principles of Game Theory to this thought exercise, I found that the majority of potential outcomes tend to break down over two specific hurdles.

The first obstacle involves the perspectives of the three involved nations: the US, Iran, and Israel. While all three of these warring parties currently consider themselves to be on the winning side, the US stands alone as the only participant that is both willing and capable of formally declaring a victory. The second major hurdle is that spotting a practical way to force a resolution without relying on military action is getting harder by the day.

At the root of these roadblocks are a few key realities. The ultimate goals of the three parties are widely scattered, which turns this situation into a naturally non-cooperative game. On top of that, despite being the strongest participant, the US is currently unable to dictate the final results for the other two nations.

#economy #markets #gamethoery #middleeastwar