BlackRock Investment Institute says recent Iran airstrikes have triggered an energy-led supply shock that could last weeks, likely lifting long-term U.S. Treasury yields and increasing inflation risk. The firm remains underweight long-term U.S. Treasuries, favors U.S. stocks, and is overweight Japanese equities due to strong nominal growth and governance reforms. BlackRock notes international equities had been outperforming until the strikes reversed the trend for energy-import-dependent regions, while naval escorts, shipping insurance, and political pressure could limit disruption.

BlackRock states Iran airstrikes caused an energy-led supply shock that could persist for weeks, which it expects to lift long-term Treasury yields and raise inflation risk; the firm therefore remains underweight long-term U.S. Treasuries and shifts equity preferences to the U.S. and Japan. The view is based on those concrete facts in the summary.