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United States coalition force invaded Iraq after months of failed negotiation with the United Nation Security Council and the Iraqi government. Many of the nations that opposed the invasion were important trading partners with the U.S. As such, global trade relationships have been damaged in the short run. This paper examines the impact of Iraqi war on the global market economy. The global market performance was sluggish in the weeks preceding the war and including the cessation of the war in Iraq. This was due to uncertainty in the price of oil and the ultimate outcome of the war. However, markets rebounded as oil prices normalized due to the quick overthrow of Baghdad. Furthermore, the U.S. dollar had been steadily weakening against the Euro in the months preceding the war. Therefore, a successful completion of the Iraq war will help prevent further devaluation of the dollar.

Policy Implications Of The War In Iraq And Its Influence On The Global Market: A Public Affairs Perspective