The conflict in West Asia is likely to have a lasting impact on financial markets, with investors expressing concerns over potential 'scar tissue' on asset prices, even if a ceasefire holds. Despite a recent temporary truce between the US and Iran, which led to a brief market rebound, many financial indicators remain below pre-war levels. Oil prices, for instance, are still approximately 35% higher than before the conflict began, reflecting ongoing uncertainties regarding infrastructure damage and shipping safety in the Gulf region. Analysts like James Vokins from Aviva Investors suggest that markets may demand higher risk premiums moving forward. Furthermore, the conflict has altered perceptions of US Treasuries and the dollar as safe assets, with rising US debt levels and geopolitical tensions prompting investors to seek alternatives. As the ceasefire remains fragile, with continued tensions in the region, the economic repercussions of the conflict are anticipated to linger, affecting global markets.