Geopolitical tensions are raising risk aversion, and short-term trends depend on the level of situation control

According to Jinshi reports, Daniela Hathorn from Capital.com stated in a report that increased uncertainty may lead to a reduced preference for risk assets due to geopolitical tensions in the Middle East.

She pointed out that as investors digest the geopolitical risk premium, market volatility may rise. If the situation stabilizes, risk aversion may fade, conflicts are controlled, and shipping lanes remain open, volatility may dissipate quickly.