‘Stagflationary Shock?’ BlackRock Analysts Stay Away from U.S. Treasuries as Middle East Crisis Escalates

Ah, BlackRock, that ever-faithful beacon of financial wisdom, has once again chosen to dodge the long-term U.S. Treasuries. Not because they suddenly developed a taste for adventure, mind you, but rather because, you guessed it, the airstrikes in Iran are shaking the very foundation of the energy market. Ah, the sweet smell of chaos, and oil futures are rising faster than your morning coffee.

In a dazzling display of foresight, BlackRock’s analysts predict that these disruptions may stretch out for weeks. Not months, of course-that would be too predictable, wouldn’t it? Oh, but the risk of stagflation lingers in the air like a bad perfume you can’t quite shake off.

“This little episode adds to inflation risk in a world already shaped by supply factors. That’s why long-term Treasury yields have subtly defied their usual safe-haven role. We foresee the risk of stagflationary shock, but hey, don’t worry. It’s not certain, as market pricing suggests. We’re staying cautious with Treasuries and prefer the exciting thrill of US stocks,” they declare, as if this advice might somehow save you from your next financial misadventure.

Now, BlackRock wasn’t always this pessimistic. Oh no! International equities were actually outpacing the good old US stocks-until, of course, the U.S. and Israeli airstrikes sent the market into a tailspin. This little spat has flipped the script, with energy-dependent regions now taking the brunt of the damage. Lovely, isn’t it? The world is a stage, and BlackRock is quite the performer.

Still, don’t get too comfortable, because the analysts say there’s hope-perhaps the US naval escorts and some well-timed shipping insurance might prevent the complete closure of the Strait of Hormuz. Oh, what a quaint little image: naval ships dodging catastrophe while ensuring the world’s energy arteries stay open. Of course, if that fails, expect a short-term supply squeeze. Enjoy the ride, folks!

Meanwhile, BlackRock remains bullish on Japanese equities. Why? Because who wouldn’t want to invest in a land where nominal growth is strong, and corporate governance reforms are all the rage? Clearly, Japan is the financial equivalent of a spa retreat in the middle of a global storm.

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2026-03-10 15:01