Statement on US, Israel and Iran 2nd March 2026

You may have been watching the news over the past few days with some concern. Developments involving the United States, Israel and Iran have escalated quickly, and events in the Middle East are receiving extensive media coverage. Recent military action began with coordinated strikes by the United States and Israel on Iranian military and nuclear-related targets, followed by retaliatory attacks by Iran across the region. The situation remains fluid and has naturally raised questions about the potential impact on global markets and the wider economy. When geopolitical events unfold at this pace, markets can react in the short term as investors digest new information. However, history consistently shows that markets are resilient and tend to recover as uncertainty settles. With that in mind, we wanted to share Omnis Investments perspective on the situation and explain how we are approaching it from an investment standpoint.

What’s happened?

The United States and Israel launched a large scale coordinated military operation against Iran on February 28, 2026, targeting Iranian leadership, ballistic missile sites, and key military infrastructure. The escalation follows stalled nuclear talks and months of rising tensions between the nations.

Iran's Supreme National Security Council confirmed that their Supreme Leader Ayatollah Ali Khamenei was killed in the initial strikes, along with dozens of senior military officials.

Iran retaliated with missile and drone strikes targeting Israel and US bases across the Middle East, including in Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE resulting in multiple casualties. Missile strikes also hit Dubai and Abu Dhabi airports - two of the busiest airports globally, leaving one dead and hundreds of thousands of travellers stranded.

What to look out for next

Oil prices have rallied to more than $80 a barrel, a 14-month high, as the war threatens the closure of the Strait of Hormuz. This sea passage ships approximately 20% of global oil. A sustained oil price rally could have a significant inflationary impact in combination with rising shipping insurance premiums. This remains a key focus for investors, as it has the potential to derail the outlook for further interest rate cuts, which has been a key driving force behind the recent uplift in global markets.

Why it’s important not to react

Markets are down this morning, but perhaps not as aggressively as you might have thought. Regardless of what happens in markets over the next few days and weeks, it's worth remembering that historically markets rebound after major falls, and often the best days can follow the worst.

What this means for investors

It is understandable that one may have questions or concerns about what is happening to your investment portfolio.

The first step is always to ensure investments are aligned with your risk profile, as this helps ensure that the level of volatility remains within the range you would expect.

The chart below compares the growth of £10,000 invested in global equities with leaving money in a cash deposit account over the past 30 years, as well as the impact of inflation.

Events such as these can understandably create uncertainty, particularly when news coverage is intense and markets react quickly. However, periods of geopolitical tension are not unusual in the context of long-term investing, and they rarely change the underlying principles that guide a well-constructed financial plan.

Our focus remains on maintaining diversified portfolios, managing risk appropriately, and ensuring that investment strategies remain aligned with your long-term objectives rather than short-term headlines.

The value of investments can go down as well as up and you may get back less than you invested. This article is for information only and does not constitute personal financial advice.

Past performance is not a reliable indicator of future returns