The conflict in the Middle East is having a devastating human impact on the people of the region. The conflict also has implication for financial markets, including superannuation. Both bond and equity markets have seen some minor corrections since the conflict began and are likely to remain volatile while the conflict continues.
What has happened?
On 28 February 2026, the United States and Israel launched coordinated strikes on Iranian nuclear facilities, military installations, and senior leadership. The operation caused the death of Supreme Leader Ayatollah Ali Khamenei. President Trump has indicated strikes will continue in the near term and has called for regime change.
Iran has retaliated with ballistic missile and drone strikes on U.S. military bases across the Gulf and on civilian infrastructure. Dubai Airport – the world’s busiest aviation hub – has been partially damaged. Persian Gulf airspace has been severely disrupted. The situation remains unstable.
What does this mean for markets?
Energy markets are the most immediately and directly impacted. The likelihood of oil price increases in the short term is heightened.
Broader markets, beyond energy, are reacting to the conflict. Traditional safe haven exposures, such as bonds, gold, the Swiss franc and USD, are increasingly attractive to investors. Equities opened a little softer in Asia trading.
What does it mean for super?
Depending on which investment option you are in, your super is likely to have exposure to Australian and international share markets, including investment in the energy sector. It means you may see your super investment returns fluctuating more than usual as the share markets move.
Super is a long term investment. If you can ‘stay the course’ in your investment option, history has shown that investment markets recover from periods of volatility over time. Typically, they recover to overtake their previous highs.
Speak to someone
If you are worried about the current situation from a financial point of view, we recommend that you speak to a financial adviser who can talk to you about your circumstances and guide you. Find out more about how a financial adviser might be able to help you on our website.