UBS "Israel-Iran Conflict, Excessive Reaction In The Stock Market...Uptrend Valid"

Escalating Middle East Conflict (Source: Bloomberg)

UBS has analyzed that despite the escalating tensions in the Middle East, the stock market's reaction is excessive. According to Walter Bloomberg, UBS evaluated that "the market often overreacts to geopolitical events" and "the conflict between Israel and Iran is no exception."

UBS particularly pointed out that this conflict does not have a substantial impact on global oil supply. Iran accounts for about 1.6% of global oil production, explaining that the current conflict is unlikely to fundamentally shake the energy market.

Accordingly, UBS predicted that "this situation is not a factor that will change the structural trend of the stock market," and the stock market is likely to continue its overall upward trend.