Iran war disrupts safe-haven investments as stocks, gold, and bonds all fall

The ongoing conflict involving Iran is shaking up global markets—and disrupting the traditional playbook investors rely on during uncertain times.

Typically, when stocks fall, investors turn to so-called “safe havens” like gold or government bonds. But in a rare twist, those assets are also declining, leaving fewer options for protection.

The S&P 500 is on track for its worst month in a year, down more than 6% from its recent highs. At the same time, gold prices have plunged nearly 16% this month—marking one of the sharpest drops in years. Bond prices have also fallen, pushing yields higher as investors sell off traditionally safer assets.

The driving force behind the turmoil is oil. Prices have surged as the conflict continues, with global benchmarks climbing above $100 per barrel. Higher energy costs are fueling fears of inflation, which in turn is reshaping expectations for interest rates and economic growth.

With inflation concerns rising, investors are betting that central banks will keep interest rates higher for longer. That makes assets like gold— which don’t generate income—less attractive, while also pressuring bond prices.

Even government debt is under strain, as rising yields reflect both inflation fears and increased federal spending tied to the conflict.

One area still seeing some demand is the US dollar, along with short-term cash investments like money market funds. These are offering relatively safer returns in an otherwise volatile environment.

Financial experts say uncertainty is the key factor driving the market. With no clear timeline for how long the conflict will last—and key shipping routes like the Strait of Hormuz still disrupted—volatility is expected to continue.

For everyday investors, the advice remains consistent: stay diversified, avoid panic decisions, and prepare for ongoing swings as global events continue to shape the financial landscape.

Explore: NBCPalmSprings.com, where we are connecting the Valley.