07/03/2026
Dear Client,
You may have seen the recent escalation of conflict in the Middle East involving Iran. Whenever geopolitical tensions increase, global financial markets typically experience short-term volatility. I would like to provide some context on what we are seeing in the markets and what it may mean for your investments.
Oil Price
One of the most immediate reactions to the conflict has been a sharp increase in the oil price. Oil markets are particularly sensitive to events in this region because a significant portion of the world’s oil supply moves through the Strait of Hormuz. Concerns about supply disruptions have already pushed oil prices significantly higher in recent days. If the conflict escalates further, prices could remain elevated in the short term.
Gold Price
Gold has also risen strongly as investors move towards what are known as “safe haven” assets during periods of geopolitical uncertainty. Historically, gold tends to perform well when investors become more risk-averse and seek stability.
Equity Markets
Global equity markets have experienced some volatility as investors react to the uncertainty. It is important to remember that markets often react quickly to geopolitical events in the short term, but historically they have tended to stabilise once the situation becomes clearer.
Our Investment Approach
At times like these, it is important to remain disciplined and focused on long-term investment objectives. Short-term market movements driven by geopolitical events are not unusual, and diversified portfolios are designed specifically to navigate periods of uncertainty like this.
We continue to monitor global developments closely and will make adjustments where necessary to protect and position portfolios appropriately.
If you have any concerns or would like to discuss your investments in more detail, please feel free to contact me at any time.
Kind regards,
Wayne Du Preez
Du Preez Financial Services
📧 wayne@dupreezfs.co.za
📞 083 797 1697