Gold, US dollar or Singapore stocks? Where to seek shelter as Middle East conflict escalates

With volatility likely to persist, investors might want to consider holding these three assets. Read more at straitstimes.com.

SINGAPORE - Financial markets have been on a rollercoaster since the United States and Israel first launched military strikes against Iran on Feb 28 that killed its supreme leader Ayatollah Ali Khamenei and other senior commanders.

Tensions continued to rise through the week, with the US torpedoing an Iranian naval ship in international waters in the Indian Ocean – one of about 20 vessels the US military said it has struck – as Iran retaliated across the Persian Gulf by striking US bases, surrounding Gulf cities and oil facilities.

The escalating conflict has jolted global energy markets with shipping through the Strait of Hormuz all but halted, affecting a fifth of the world’s supply of oil and liquefied natural gas.

On March 6, the US warned firepower over Iran could surge “dramatically”, even as Israel declared it is moving into the “next phase” of war.

With volatility likely to persist, investors seeking to optimise returns or hedge their portfolios against further uncertainty may want to consider holding these three assets:

Investors seeking regional diversification may want to consider Singapore stocks, Mr Afdhal Rahman, executive director of wealth advisory at OCBC Bank, said in a March 3 note to clients.