West Asia’s Iran-Israel clashes have sparked market mayhem, driving investors to gold, silver, and oil amid stock selloffs. The critical Strait of Hormuz—gateway for one-fifth of global oil—stays choked on day four. Aviation chaos ensued: Dubai and Doha airports closed weekends, forcing mass cancellations by Emirates, Etihad, Qatar Airways.
Geopolitical fog signals more swings, per experts. UBS cuts through it. Chief strategist Mark Haefele’s note forecasts fleeting energy snarls. Prices will pull back as intact facilities reassure markets.
Past crises teach: panic sells low, holds back gains. UBS counsels endurance—embrace equities broadly, diversify on downturns, eyes on the long game.
Stocks face initial strain from tensions, yet UBS eyes 10% appreciation by 2026-end, fueled by US vigor, earnings strength, global spending surges. Bullish calls cover US, Europe, Japan, China, emerging arenas; Asia-Pacific stars—China tech, India, Oz, Japan—will lead.
Commodities beckon for 2026, precious metals foremost. Tailored strategies suit the region’s whirl. Small gold bets diversify and shield risks; quality debt, hedge funds steady the ship.
Surging oil risks inflation, possible rate responses—but banks signal restraint. It burdens households and businesses like stealth taxes, but dynamic supply counters. Temporary surges won’t hobble economies enduringly; persistent ones might dent importers short-term, then dissipate.