New Delhi, Jan. 21 -- Even as shifting geopolitical dynamics with flashpoints of Venezuela, Greenland, and Iran have taken centre stage of the world's focus in 2026, market reactions have remained fairly muted with global equities, rates and FX remaining stable. Only gold and oil briefly reached highs of +7% and +8%, respectively, year-to-date (YTD), reflecting investor uneasiness and rising probabilities of downside scenarios, according to a report by Allianz.

The report titled "Geopolitics heats up from Venezuela, to Greenland to Iran, but investors shrug. For how long?" discusses how geopolitical tensions worldwide can impact markets.

"We anticipate two tail-risk events that could trigger a strong global market reaction: 1) an escala...