BlockBeats news, on March 9, optimistic sentiment about a rapid resolution to the Middle East conflict quickly faded. Within just a few days, investors have shifted from观望 to decisive action: beginning to price in a deeper, more prolonged supply shock—one that could drive up inflation while constraining economic growth. Since the outbreak of the Iran war, global stock market capitalization has declined by approximately $6 trillion.
Although the prospect of a coordinated release of oil reserves by the G7 briefly helped markets recover some losses and pushed oil prices lower, Monday’s market movement remained intense. “The pendulum is swinging toward panic,” said Danny Wong, CEO of Areca Capital. “There’s been a rush to sell or reduce exposure to all types of risk assets.”
"Investors must raise their assessment of the probability of worst-case scenarios," said Rajeev de Mello, Global Macro Portfolio Manager at Gama Asset Management. "The challenge for the market is that this shock has stagflationary characteristics." (Jinshi)