BlackRock Warns Middle East Supply Shock May Lift Inflation, but Sees Weeks-Long Disruption

BlackRock warns Middle East supply shock may lift inflation, but sees weeks-long disruption

BlackRock warned that the Middle East conflict is causing an energy-led supply shock likely to keep inflation pressure high, but expects the disruption to last weeks, not months. The firm maintained an underweight position in long-term U.S. Treasuries and favored U.S. and Japanese stocks. Brent crude fell to $86.50 after surging above $119. BlackRock said the impact is concentrated in LNG infrastructure, with Europe and Asia most exposed. The po…

‘Risk of a Stagflationary Shock’: BlackRock Analysts Stay Underweight on Long-Term U.S. Treasuries Amid Conflict in Middle East

The financial giant BlackRock remains underweight long-term U.S. Treasuries amid the airstrikes in Iran, which are spurring an energy-led supply chain shock. In a new commentary, analysts at BlackRock Investment Institute say oil futures pricing suggests “disruptions could last for weeks, not months.” “The episode adds to inflation risk in a world shaped by supply factors. That’s why long-term Treasury yields have edged up, defying their role as…