The Iranian regime has condemned Washington’s decision to deny visas to several members of its national football team, a move that threatens to escalate tensions ahead of the World Cup. The US State Department, citing national security concerns, has blocked entry to players with alleged ties to Iran’s Revolutionary Guard. For the markets, this is yet another reminder that geopolitical risk remains a stubbornly unhedged liability.
Tehran’s riposte is predictable: a call for the UN to intervene and a threat of retaliatory measures. But the real bottom line is capital flight. The rial has already lost 15% against the dollar this month, and this diplomatic spat will only accelerate the exodus of hard currency.
Investors should brace for volatility in oil prices and a potential spike in defence stocks. The World Cup, meant to be a spectacle of unity, has become a stage for geopolitical brinkmanship. And as always, the taxpayer foots the bill.
