Goldman CEO says markets may take a 'couple of weeks' to digest Iran war impact

Goldman Sachs CEO David Solomon said on Wednesday that he was surprised at the "benign" reaction in financial markets over the conflict in the Middle East, and it may take a "couple of weeks" for investors to more fully digest the impacts.



"I look at the market reaction, and I'm actually surprised that the market reaction has been more benign given the magnitude of this as you might think," Solomon said in a speech at a business summit in Sydney.



Solomon said markets tend to react in a muted way to geopolitical events unless they have a direct impact on economic growth.



"There's a cumulative effect of everything that's happening and a much harsher reaction. Up to this point, we haven't seen that cumulative effect," he said. "But it's very hard to speculate because there is so much that is unknown at this point."



"I think it's gonna take a couple of weeks for markets to really digest the implications of what has happened both in the short term and medium term, and ​I can't speculate as to how that would play out," he said.



Oil prices have spiked as the widening conflict stoked supply worries, exacerbating investor concerns about inflation.