Middle East Update

Over the weekend, geopolitical tensions in the Middle East escalated sharply as the United States and Israel launched coordinated strikes on Iranian military and leadership targets, resulting in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei. Iran responded with missile and drone attacks across Israel and several Gulf states, raising concerns about potential disruption to energy supply routes, particularly the Strait of Hormuz, a critical chokepoint for global oil flows.

At the time of publication, markets had reacted in line with previous geopolitical shocks, with oil prices rising as markets priced in additional uncertainty and equity markets softening amid broader risk-off sentiment. Despite the severity of recent headlines, market movements have so far remained relatively orderly.

While the situation remains fluid, our investment team continues to monitor developments closely, focusing on whether the current disruption will evolve into a more sustained supply shock or remain a temporary adjustment. Many analysts note that the oil market is currently well supplied, and major producers retain spare capacity that could help mitigate more prolonged disruptions if needed.

Our portfolios are designed with resilience in mind, balancing exposure to growth assets with diversified defensive positions and high quality fixed income to help navigate periods of heightened geopolitical uncertainty. At present, we see no need for significant portfolio adjustments, but we remain prepared to respond proactively should conditions change.

Our Investment Director, Paul Dennis explains how staying focused on the long term is key during turbulent times.

As always, your financial adviser is on hand to talk to you about any questions you may have.