Six months of war: How the Middle East conflict has shaped financial markets - Reuters

Six months into the conflict, financial markets have largely moved past the initial shock phase and into a state of persistent risk assessment. Developments in the Middle East have repeatedly intersected with global asset prices, particularly through energy markets, given the region's significance to crude oil and gas supply routes. Each escalation has prompted a recalculation of risk premiums, while extended periods of containment have allowed markets to recover some composure.

Beyond oil, the conflict has influenced investor behavior through classic safe-haven flows. Uncertainty over the regional outlook has periodically lifted demand for gold, U.S. Treasuries, and the dollar, while shipping and freight costs have reflected chokepoint concerns. Equities have seen rotation into defense and energy sectors, alongside heightened volatility for airlines and insurers exposed to the region.

As the conflict enters its seventh month, the key question for markets is whether current dynamics persist or de-escalate. Investors will monitor diplomatic efforts, oil supply responses from major producers, and any signs of broader regional involvement. The enduring lesson is that geopolitical risk has become a routine variable in asset pricing, rather than a temporary disruption.