The Globe and Mail reports in its Friday edition that financial markets may be in for a "knee-jerk" sell-off if the U.S. military attacks Iran, with economists warning that a dramatic rise in oil prices could damage a global economy already strained by President Donald Trump's tariffs. A Reuters dispatch to The Globe reports that oil prices fell nearly 2 per cent on Wednesday as investors weighed the chance of supply disruptions from the Israel-Iran conflict and potential direct U.S. involvement. The price of crude remains up almost 9 per cent since Israel launched attacks against Iran last Friday. With major U.S. stock indexes trading near record highs despite uncertainty about Mr. Trump's trade policy, some investors worry that equities may be particularly vulnerable to sources of additional global uncertainty. Barclays sees crude climbing to $85 (U.S.), even to $100 (U.S.) in a "worst case" scenario of a wider conflagration involving the United States. Citigroup warned on Wednesday that materially higher oil prices "would be a negative supply shock for the global economy, lowering growth and boosting inflation, creating further challenges for central banks that are already trying to navigate the risks from tariffs."