Investors are expecting Donald Trump to back down in the war with Iran – but what if he doesn’t?

Global markets have become inured to the US president's posturing over the past year, but economists warn they may be a little bit complacent' in anticipating a short conflict in the Middle East

Investors over the past year have learned that Donald Trump has a boundless capacity to quickly reverse course in the face of acute political or market pressures.

But a week since the United States and Israel launched missile strikes on Iran, there are fears the war could morph into a protracted conflict.

Patrick Commins is Guardian Australia's economics editor