The recent escalation between Iran and Israel is a stark reminder of how quickly geopolitical tensions can impact global markets—especially oil. With Brent crude spiking over 10% on June 20, investors may understandably feel uneasy. Scenarios ranging from tighter sanctions to a full closure of the Strait of Hormuz suggest oil could soar as high as $130 per barrel, with ripple effects including higher inflation, delayed interest rate cuts, and slower global growth.
But here's the key takeaway: events like these are precisely why trying to time the market rarely works. Market reactions to crises are swift and unpredictable. By the time headlines hit, much of the price movement is already behind us. While it's tempting to react to news—either by pulling back or jumping in—successful long-term investing is about staying the course through volatility, not trying to outguess it.
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