It seems as if we're seeing quite a lot of geographic divergence in terms of the response to these new geopolitical threats. War in Iran. It's been an incredible session in Asia.A lot of negativity, a lot of negative prints on the screen. Is it over, do you think, by any stretch. I think, first of all, no, the negative impact from the conflict in Iran is not over.And that's because we're just not going to have an easy full flow of energy from the Middle East for a good while to come. I know there have been ...

Geopolitical Impact on Markets - The ongoing conflict in Iran is expected to have a prolonged negative impact on energy flows from the Middle East, affecting market stability [2][3] - Asian markets are experiencing significant declines, with Korean stocks facing their worst trading days, highlighting the severity of the situation [3][4] Market Performance Context - Despite recent downturns, the Korean stock market is still up over 20% year-to-date, indicating a generally strong performance in the broader market prior to the recent geopolitical tensions [4][5] - The overall US market has also performed well this year, suggesting that the current corrections may not lead to a full-blown bear market but rather a necessary adjustment [5][6] Gold and Currency Trends - Short-term predictions indicate potential downside for gold prices due to changing geopolitical risks and market dynamics, with a strengthening dollar expected as the conflict continues [7][9] - Recent momentum in stocks has shifted, leading to a reevaluation of investment strategies, particularly concerning gold and dollar diversification [10][11]

>> THIS IS "BALANCE OF POWER." LIVE FROM WASHINGTON, D. C. >> FROM BLOOMBERG'S WASHINGTON, DC STUDIOS TO OUR TV AND RADIO AUDIENCES WORLDWIDE, WELCOME TO "BALANCE OF POWER." ALONGSIDE KAILEY LEINZ I'M JOE MATHIEU.KAILEY: SOMETHING HAD TO BE DONE, PRESIDENT TRUMP DOUBLING DOWN ON HIS JUSTIFICATION FOR THE STRIKES WHILE MEETING WITH GERMANY'S CHANCELLOR, LASHING OUT AT ALLIES WHO WON'T LET THE U.S. USED AIRBASES. WILL BE JOINED BY THE ISRAELI AMBASSADOR TO THE YOU IN JOE: ORCHIDS. JUST THE FALLOUT FROM THE IR ...

Market Reaction - The market experienced a significant selloff, with all three major indexes down more than 2% due to escalating tensions in the Middle East [1][2] - Gold dropped 4%, silver fell nearly 8%, and Bitcoin also declined, while oil prices remained high [2] - The closure of the Strait of Hormuz, responsible for approximately 20% of global oil trade, was a primary driver of the market's fear [2][6] Geopolitical Developments - An Iranian official threatened to "set fire to any ship attempting to pass through the Strait" of Hormuz, causing energy prices to rise [3] - President Trump announced that the U.S. Navy would escort tankers through the Strait if necessary, aiming to ensure the free flow of energy [4][3] - The market's reaction to Trump's statement indicated a shift in sentiment, with the Dow down only 0.6% by the afternoon [4] Potential Outcomes - Three potential paths for the conflict were outlined: - **Path A: Negotiated Resolution** - Successful talks leading to a ceasefire, resulting in a brief oil price spike and market recovery [9][10] - **Path B: Prolonged Conflict** - Hardliner consolidation in Iran could lead to sustained regional tensions, with oil prices potentially reaching $100 to $140 per barrel [11] - **Path C: State Collapse** - A chaotic fragmentation of Iran could result in severe investment fallout, with oil prices soaring to $150 to $200 per barrel and a potential U.S. recession [12][13] Investment Strategy - Investors are advised to categorize their portfolios into high-conviction and low-conviction holdings, focusing on long-term investments with durable competitive advantages [20][21] - For high-conviction stocks, if the original investment thesis remains intact, market volatility may present buying opportunities [21] - Low-conviction positions should be treated with caution, as sudden market shifts may necessitate protective measures [22][23] Energy Market Focus - The Strait of Hormuz and its impact on oil prices are critical indicators for market stability, with oil being essential for global energy consumption and various industries [18] - The market's reaction will depend less on headline risks and more on the durability of any energy shock, as indicated by Goldman Sachs' chief strategist [18]

The economic consequences of the energy shock will be far-reaching. These countries will be the first to feel the pain: https://t.co/yzNZK1BN5uPhoto: Satellite image ©2026 Vantor via AP https://t.co/brLTyCKBu3 ...

>> HAVE TO PLACE MORE RISK. >> A REGIME THAT IS NOW UNDER THREAT DOES NOT FEAR CONSEQUENCES. >> I DON'T THINK THIS WILL REALLY DISRUPT MARKETS. >> THE SUBDUED REACTION IS DUE PARTLY TO THE FACT THAT WE HAVE THIS MOVE AHEAD OF TIME. >> I DON'T WANT TO COUNT AGAINST CORPORATE AMERICA. THEY SEEM TO BE RISING TO THE OCCASION ON JUST ABOUT EVERY ISSUE WE HAVE SEEN. >> THIS IS BLOOMBERG SURVEILLANCE WITH JONATHAN FERRO, LISA ABRAMOWICZ, AND ANNMARIE HORDERN. JONATHAN: LIVE FROM NEW YORK CITY, GOOD MORNING, GOOD M ...

The past few years have brought a series of crises, from the covid-19 pandemic and the war in Ukraine to an energy shock and a trade war. Somehow, the global economy powers on https://t.co/wsHp8gVvr6 ...