Middle East Escalation
Hi All,
I’m sure you’ve seen the weekend’s developments in the Middle East and the subsequent market reaction. Events of this nature naturally create concern and can prompt questions about what it means for your investments. We’d like to share a measured perspective on the situation and reaffirm the principles guiding our approach.
As always, sending love! And we are here if you’d like to chat.
Richard & the F&A team
An Update from Brendan de Jongh - Head of Global Investment Strategy at PMX (03 March 2026)
Middle East Escalation
An update post the weekend’s events
The escalation in the Middle East over the weekend has introduced a renewed layer of geopolitical uncertainty into financial markets. On 28 February, the United States and Israel launched coordinated military strikes against Iran, targeting nuclear and missile infrastructure.
Iran has responded, and the situation remains fluid. Oil prices have risen on concerns about potential supply disruption, equity markets have experienced increased volatility, and investors have moved towards more defensive assets. These reactions are typical when events raise questions about economic stability, inflation and global growth.
While the situation is unsettling and still evolving, it is important to recognise that markets regularly contend with geopolitical shocks. The precise path and duration of events are unknowable, and reacting to uncertainty with abrupt portfolio changes can introduce additional risk at an already uncertain time.
Developments of this nature not only prompt understandable emotional responses, they can also create a strong sense that we need to act within our portfolios. That impulse is natural. However, making reactive decisions in response to rapidly changing headlines often crystallises losses or alters risk exposures at the wrong moment.
Our portfolios are built on strategic asset allocation and broad diversification across asset classes that respond differently to economic conditions. This diversification is intended to help absorb shocks and reduce reliance on any single region, sector or outcome. Within this framework, disciplined rebalancing maintains alignment with agreed risk levels, trimming areas that have strengthened and adding to those that have weakened, without attempting to forecast events.
Market history suggests that the most significant risk to long-term outcomes is frequently behavioural. In the long term, remaining invested and trusting a structured, risk-aware approach is typically more effective than attempting to reposition portfolios in response to uncertainty.
The team remains focused on developments and continues to monitor events closely as they unfold. We will keep you informed as needed, and our commitment to disciplined portfolio management and prudent risk oversight remains unchanged.
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