US attacks on Iran could cause a surge in oil prices and a flight of capital into safe assets, warn analysts

<p>After the US attacks on Iran's nuclear sites, financial markets are expecting heightened volatility with oil prices on the rise. President Trump has said the attacks destroyed key facilities, and analysts predict oil prices could reach $130/bbl if the conflict escalates. That could influence US inflation and affect the Federal Reserve's decisions. Although markets have remained stable in the short term, history suggests a medium-term recovery.