The year 2018 is beginning with economic and geopolitical indicators pointing in very different directions. Global stock markets are at record highs and economic confidence is growing across most of the developed world. But while investors are bullish, followers of international politics are very nervous.

In recent years, it has tended to be the Middle East that delivers bad news, and Asia that specialises in optimism. This year could reverse that pattern. The biggest geopolitical risk is a war on the Korean peninsula. If the US carries through on President Donald Trump’s threat to use “fire and fury” to disarm North Korea it will be the first time that America has gone to war with another nuclear-armed state. The risks are literally incalculable.

By contrast, there are several big things that could finally go right in the Middle East. The combination of turmoil in Iran, liberalising reforms in Saudi Arabia and the final defeat of Islamic State on the battlefield would all be serious setbacks for the most fundamentalist and confrontational forms of Islamism.