Roubini Warns Against Optimism on Iran War, Cites Global Recession Risk

Economist Nouriel Roubini warns that market optimism regarding the end of the Iran war is excessive, leading to an underestimation of global recession and stagflation risks.

Sun May 10 2026

Roubini Warns Against Iran Peace Optimism

Economist Nouriel Roubini, known as 'Dr. Doom', has cautioned that market optimism regarding an early end to the Iran war is detached from reality. He suggests that the market may be overestimating the likelihood of a peace agreement, thereby overlooking significant risks such as a potential global recession, stagflation, and a stock market bear market.

Potential for Stagflation and Oil Price Spikes

Roubini observes that despite no peace agreement being signed, major stock indices have recovered to historical highs. He attributes this to market expectations of conflict resolution and hopes that AI-driven economic growth will offset war impacts. He warns that in a worst-case scenario, oil prices could surge past $200 per barrel, emphasizing that if the market's excessive optimism proves unfounded, a harsh reality could soon follow.

*Source: news.cnyes.com (2026-05-10)*

Tags: #Iran #Roubini #Recession #Stagflation #Oil Prices