Goldman Sachs chief executive David Solomon said he was surprised that global markets did not react more violently to the wave of missile strikes between the United States, Israel and Iran given the growing likelihood that a long conflict in the Middle East will lead to a spike in inflation.
The comments from one of the world’s most powerful bankers came as investors became increasingly fearful that days of bombings and threats would escalate into a full-blown regional conflict, wiping more than $60 billion from the Australian sharemarket and forcing the Korean exchange into an emergency halt after stocks slumped 8 per cent.
