The Iran conflict is not just a geopolitical shock, it may mark a deeper shift toward structurally higher inflation. As fiscal expansion meets supply constraints, investors may need to rethink portfolios for a “higher for longer” world.

2025 began with trade tensions and equity drawdowns but ended in a rare synchronised rally across asset classes. From emerging market leadership to the return of bonds as a source of income and diversification, the year marked a decisive shift in global market dynamics and investor behaviour.