Global Events and Your Investments: What you need to know this week

 

Recent global events can understandably feel unsettling, especially when headlines are moving quickly and markets react in real time. Below is a clear, factual summary of what has happened, what we are watching next, and why a calm, considered approach remains important.

 

What’s happened?

Over the weekend, the United States and Israel launched a large scale, coordinated military operation against Iran, targeting senior leadership, ballistic missile sites and key military infrastructure. This escalation followed stalled nuclear talks and several months of rising geopolitical tension.

Iran’s Supreme National Security Council has confirmed that Iran’s Supreme Leader, Ayatollah Ali Khamenei, was killed during the initial strikes, along with a number of senior military officials.

Iran has since retaliated with missile and drone strikes targeting Israel and US bases across the Middle East, including Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE. Missile strikes also hit Dubai and Abu Dhabi airports, two of the busiest airports globally, resulting in casualties and significant travel disruption. Our thoughts are with everyone affected in the region.

Markets have reacted with increased volatility, though declines have so far been relatively measured compared to some historical geographical events.

 

What to look out for next

One of the most immediate market impacts has been on oil prices, which have risen above US$80 per barrel, a 14-month high. This reflects concerns around potential disruption to the Strait of Hormuz, a vital shipping route through which around 20% of the world’s oil supply passes.

There has also been a rise in wholesale gas process, particularly in Europe. Sustained higher energy costs could impact European growth and complicate longer-term reindustrialisation efforts,

Sustained higher oil prices could add to inflationary pressure, particularly when combined with rising shipping insurance costs. This is something investors are watching closely, as it could affect the outlook for future interest rate cuts, a key driver behind recent market gains.

 

Why it’s important not to react

Markets have fallen following the news, but not as sharply as some might have expected. While short term volatility is uncomfortable, history consistently shows that markets tend to recover after major geopolitical events.

Periods like this can test investor confidence, but reacting emotionally, for example by making sudden changes based on headlines, can often do more harm than good. A long- term, well-structured investment strategy is designed to weather exactly these kinds of events.

 

What does this mean for your investments?

The first step is always ensuring that your investments remain aligned with your risk profile. This helps make sure that any market ups and downs stay within a level you would reasonably expect and feel comfortable with.

More broadly, diversification plays a crucial role. We have long been mindful of elevated valuations in parts of the US stock market and have maintained a cautious approach. We are also seeing signs of a diversification trade emerging, with Europeans and Asian equities benefiting relative to the US.  

Every individual situation is different, and it is important that your portfolio reflects your personal goals, time horizon and attitude to risk, not the latest news cycle.

 

Speak to me

If you have questions or would like to review how your investments are positioned in light of recent events, give us a call in the office and we will try to help provide clarity, reassurance and confidence during these uncertain times.

Approved by The Openwork Partnership on 03/03/2026

The value of your investment and any income from it can go down as well as up and you may get back less than you invested.

Nigel Grice and Associates is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.