The stock market:
The Stockholm Stock Exchange is falling on Monday; at lunchtime it is down 1.6 percent.
"The direct effect is that uncertainty is taking hold of the stock and financial markets. The stock markets are in the red," says SEB's private economist Américo Fernández.
He advises Swedish small savers against selling their shares.
"This is classic herd behavior and fear of loss. The most important thing is to stay calm. This is nothing that will change Swedish conditions here and now in the short term."
Energy prices:
In the near future, oil prices are expected to be higher and to experience large movements, says Danske Bank's senior strategist Maria Landeborn.
"Should oil prices continue to rise and remain at a higher level, it will become increasingly clear that households will have to cut back on other consumption."
If the conflict is prolonged, prices across all energy sources could rise, says Américo Fernández.
"There is an obvious risk that households will face higher prices at the pump. But that is only if this is not a temporary upturn."
Inflation:
If the escalated situation in the Middle East continues for a long time, it could affect inflation in Sweden.
"We have been waiting for a recovery in the Swedish economy for a couple of years now. It has been constantly postponed, and one factor pointed to as causing the delay is global uncertainty, events that keep happening and make households wait a little longer before increasing spending," says Maria Landeborn, and adds:
"Now this is a potential new source of concern."
The fact that shipping through the Strait of Hormuz has been halted could cause global freight prices to skyrocket, which would affect the final prices of Swedish companies.
"Then there is a risk that we will return to a clear inflationary impulse for Swedish households," says Américo Fernández.
Nordea's chief economist Annika Winsth also believes that the situation could affect inflation in Sweden.
"But you should also remind yourself that we face very low inflation. Worryingly low inflation," she says.
The policy rate:
According to Maria Landeborn, high energy prices will not affect the Swedish Central Bank's actions in the short term. However, if prices continue to rise and we see cost increases for other goods, the situation will be different:
"This could make it more difficult for central banks, including the Swedish Central Bank, to lower interest rates or to ease monetary policy."
Annika Winsth believes that the likelihood that the Swedish Central Bank will lower the interest rate at the next meeting has decreased after this weekend's attacks.
"In the uncertain environment we are in today, I believe that the Swedish Central Bank will choose to leave the policy rate unchanged," she says.
