Financial markets have remained volatile since the Iran conflict erupted, raising questions about whether investors are underestimating potential economic fallout. The instability has sparked comparisons to previous geopolitical crises, particularly Russia's invasion of Ukraine, as traders assess the broader implications for global markets.

Soumaya Keynes, host of the Financial Times Markets podcast, explores these concerns with Robin Brooks, a senior fellow at the Brookings Institution and author of the Shadow Price Macro substack. Brooks brings expertise from his work in the Global Economy and Development program, offering insights into how current market reactions compare to historical precedents.

The discussion centers on whether current market pricing accurately reflects the economic risks posed by the Iran situation. With markets showing signs of unease but not panic, Brooks and Keynes examine whether investors are appropriately weighing the potential for a larger economic disruption.