If the recent protests in Iran rumble on or even spread, the resulting disruptions to activity are likely to weigh on the country’s economy but the fallout for the rest of the MENA economies, as well as global oil markets, should be limited. Moreover, if the Iranian regime reacts to protesters’ calls by scaling back its interventions in regional conflicts, the protests could help to soothe the geopolitical tensions that spooked investors late last year.
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