Geopolitical tensions around Iran push investors into risk-off mode

Global markets today are likely to be driven mainly by renewed geopolitical tensions surrounding a potential Iran-related conflict, which are pushing investors into a more cautious, “risk-off” stance. After weakness late last week, many traders are trimming exposure to riskier assets like equities and rotating toward safer havens such as cash, high‑quality bonds, and defensive sectors. This shift reflects concern that any escalation in the Iran situation could disrupt energy markets, increase volatility, and weigh on global growth expectations. The recent pullback in major indices, including the S&P 500, signals that investors are reassessing risk rather than reacting to economic data or central bank policy. Seasonal trends would normally support stocks into late March and April, but the geopolitical overhang is dominating sentiment and could continue to cap near‑term gains. If tensions ease or there are signs of de‑escalation, markets could see a relief rebound; if headlines worsen, the current risk‑off mood may deepen, with global equities under pressure and safe‑haven assets in favor.