Nouriel Roubini Warns Investors Are Underpricing Iran War Risks, Sees Potential for Stagflation and Bear Market

Nouriel Roubini says markets are underpricing the risk that the U.S.-Iran conflict could worsen.

He sees a range of outcomes, from a peace deal to a prolonged war that could keep oil prices elevated.

If fighting drags on or escalates, higher energy costs could slow global growth and raise stagflation risks.

A wider conflict, including threats to the Strait of Hormuz, could unsettle Wall Street and global stocks.