Iran war sparks turmoil in markets - where do investors go from here?

The war in Iran drove a pronounced risk-off reaction in March: the Stoxx 600 recorded its worst month since March 2020, while US benchmarks (Nasdaq and Dow) slipped into correction territory (≥10% declines from peaks). Brent crude is set for its largest monthly gain on record, amplifying cross-asset moves. Overall the geopolitical shock has produced elevated volatility and broad market downside across equities and commodity markets.

Analysis

The war in Iran drove a pronounced risk-off reaction in March: the Stoxx 600 recorded its worst month since March 2020, while US benchmarks (Nasdaq and Dow) slipped into correction territory (≥10% declines from peaks). Brent crude is set for its largest monthly gain on record, amplifying cross-asset moves. Overall the geopolitical shock has produced elevated volatility and broad market downside across equities and commodity markets.