Tensions between the U.S. and Iran are rattling investors, as President Trump vows the Middle Eastern country will “never have a nuclear weapon.” But some experts predict Tehran will likely choose its next course of action very carefully.
“[Iran] will probably be measured in whatever response they make. Because they also recognize that they themselves would then potentially be the targets of a stronger U.S. response,” Richard Schmierer, former U.S. Ambassador to Oman and Middle East Policy Council President told YFi PM.
Hundreds of thousands of mourners gathered at Iran’s capital Monday for the funeral of Qassem Soleimani, the top general killed in a U.S. airstrike last Thursday. The crowd chanted “Death to America” during the tribute and Supreme Leader Ayatollah Ali Khamenei wept while leading a prayer for the commander.
Despite the heightened emotions, Schmierer does expect Iran to make an effort for a “face-saving” solution.
“It will take a little while, but I'm encouraged to think that it will be more of a moderate response, and one that does seek a diplomatic way to defuse the tension,” he added.
Back in the U.S., House Speaker Nancy Pelosi (D-CA) says lawmakers will vote on a war powers resolution curbing President Trump's military actions against Iran. In a letter sent to Democratic colleagues Sunday, Pelosi characterized the Trump administration’s recent airstrike as “provocative and disproportionate.”
“I can certainly understand the concerns of the Congress, because this really is an unprecedented action. And so I would think that Congress, which actually under the Constitution has the power to go to war, would want to make sure that its prerogatives are protected,” Schmierer said.
McKenzie Stratigopoulos is a producer at Yahoo Finance. Follow her on Twitter: @mckenziestrat
Read more:
‘We should not expect a happy ending’ in US-China trade war: expert
Iowa pork producer on US-China trade tensions: 'We feel like a yo-yo'
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.
