Iran War and Rising Rates Drive Market Volatility in Q1
Global stocks lost 7 trillion dollars this quarter as the Iran war and rising rates impacted markets. Oil prices rose while investors weighed stagflation risks.
The first quarter of 2026 is concluding after an extraordinary period of financial market volatility. Global markets have been heavily influenced by geopolitical events, most notably a war involving Iran that has wiped approximately $7 trillion from global stock values. Oil prices have recorded their second-largest quarterly increase of the century, while natural gas prices in Europe have nearly doubled.
This environment has led to a significant shift in interest rate expectations. Robert Dishner, head of trading at Neuberger Berman, observed that the current impact on bond markets has been more dramatic than the volatility experienced during the recovery from the pandemic or the invasion of Ukraine by Russia.
