Analyst Warns Iran War Threatens US Markets and Gulf Investment
In a video published on his YouTube channel, financial analyst Sean Foo (@SeanFooGold) examined the economic pressures facing the United States following the outbreak of war with Iran, arguing that the conflict is undermining demand for dollar assets and could trigger broader financial instability.
Foo highlighted concerning trends in US Treasury markets, noting that yields on 10-year bonds have risen from 3.9% to over 4.1% despite the crisis—an unusual pattern given that US debt typically acts as a safe haven during global turmoil. He attributed this weakness to investor fears that the war would worsen the national debt and devalue the dollar over time, making long-term holdings less attractive.
The video estimated the cost of the first 100 hours of "Operation Epic Fury" at approximately $3.7 billion, with munitions accounting for the largest share. Foo argued that this spending yields no productive economic return, instead benefiting only the military-industrial complex while increasing the need for federal borrowing.
A central concern raised in the analysis is the potential reaction of Gulf states—particularly Saudi Arabia, the UAE, and Qatar—which collectively hold over a trillion dollars in US stocks, bonds, and corporate debt. According to Foo, these nations are enduring thousands of Iranian projectile strikes and facing pressure to reconsider their US investment commitments. Any large-scale withdrawal or "dumping" of dollar assets would force the US to scramble for alternative sources of financing, with China unlikely to fill the gap.
Foo also warned of cascading effects from rising oil prices, which threaten to push inflation higher and squeeze US consumers already facing elevated borrowing costs and a weakening labour market. He concluded that while the administration projects confidence, the underlying economic reality is "corroding," and the conflict could become "the final straw that breaks the camel's back."
Source: Bessent Orders Investors TO BUY US Assets As MidEast Investment DUMP Threat Begins (Video: https://www.youtube.com/watch?v=IpEAh947a64)