---
title: "West Asia conflict threatens to push markets into bear market rhythm"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281715264.md"
description: "The ongoing Gulf War, particularly centered on Iran, poses a significant risk of pushing markets into a prolonged bear market. This conflict has already led to rising oil prices and declining equities, reminiscent of past financial crises. Investors face uncertainty as they assess whether the current market turmoil is a shallow or deep bear market. The potential for persistent inflation and disruptions in supply chains could further exacerbate economic challenges, leading to a cycle of market volatility and eroded confidence."
datetime: "2026-04-05T08:25:45.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281715264.md)
  - [en](https://longbridge.com/en/news/281715264.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281715264.md)
---

# West Asia conflict threatens to push markets into bear market rhythm

There are two types of bear markets. The first is a shallow one: A sharp fall initially, but then the subsequent selloffs are less intensive. Everything gets resolved in four to five months. For almost a decade, India and the rest of the world have got used to this kind. The second variant is a deep bear market, which arrives in instalments, making despairing new lows over months and sometimes years. These are interrupted by powerful rallies, each upswing offering just enough encouragement, until aftershocks appear from nowhere to puncture their optimism again. Each time the market is in a deep dive, investors have to judge: Are we in a shallow or a deep bear market? The answer comes from assessing how much of the trouble is from a single source. If it is, such as Donald Trump’s tariff war, it would be a shallow bear market. If the sources are multifarious and locked in a vicious cycle, as they were in the 2008 global financial crisis, which affected too many institutions and countries, it would be a prolonged bear market. The present Gulf War is perhaps in the second category.

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