The New Zealand sharemarket is likely to follow international markets down if the West takes military action against Syria but the real concern is if war were to spread to other nations, spiking up the price of oil, market watchers say.
Grant Williamson, a director at Hamilton Hindin Greene, said any international conflict weighed on equities, but it could be short-lived. "Markets tend to go down as soon as the first missile hits the ground and then start going up again."
But Williamson said the concern was whether military action would spread to other Middle Eastern countries like Iraq, which could affect the production and transportation of oil.
"The major concern is the oil price," he said.
"The markets are a little bit nervous about it [Syria] but it's nothing too serious. Investors will be hoping for a quick solution and a return to normal."