Panic hasn't taken over financial markets, but investors are nervous as the world waits for Iran's next move in the widening Israel-Iran war in the Middle East.
US strikes on Iran's nuclear sites have sent the price of oil to a five-month high, sparked a rally in gold and saw the US dollar strengthen against other currencies, including the Australian dollar.
Partner at the corporate advisory firm, Orizontas, and former diplomat for Australia, Patrick Gibbons, who spent three years in Tehran, joined The Business to discuss what Iran's next move could be, and what impact it would have on the global economy.
He says he believes there are several options Iran is weighing up, including blocking the Straits of Hormuz, attacking oil fields in Saudi Arabia, or even unleashing various terror cells within Western Europe and the US.
He says such actions could prompt strong retaliation and an escalation in the war.
He says at this stage, the main focus has been on whether Iran closes the Strait of Hormuz, the world's main oil choke point, where roughly 25 per cent of the world's oil and 25 per cent of LNG flows through.
Mr Gibbons says if the Strait of Hormuz was closed, it wouldn't have a massive impact on the Iranian economy, because it already has major problems with a series of sanctions. The IMF says Iran's inflation officially stands at 45 per cent, "but in reality, it's much higher. It's got chronic underemployment within the workforce, and now it's going to have some serious constraints around the provision of basic services."
He says closing the Strait of Hormuz probably wouldn't create a lot of problems for Iran. It would simply exacerbate some of the existing ones the country currently has.
But, he says, it would have implications for the globe, because of the amount of energy at stake. But even if Iran wanted to, Mr Gibbons says he now doubts Iran has the military capability to seal the Strait of Hormuz.
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