: Wednesday, March 04, 2026 5:43 PM
New Delhi,. Safe haven currencies from the dollar to the yen, including gold, are expected to rise as tensions rise in the Middle East due to the war between the US, Israel and Iran. This information was given in the report released on Wednesday.
The DBS Bank report said spreads on sovereign and corporate bonds could widen for investors, while monetary policy remains unchanged in the near term. DBS Bank’s chief economist, Taimur Baig, warned that despite minimal threat from Iranian naval warships, the potential to lay mines in the Strait of Hormuz could slow down shipments, raise insurance, shipping costs and energy prices.
“With the Kurds in the north and the Baluchis in the south, regime change could coincide with the conditions for the end of the wars, drawing many countries in the region, from Turkey to Iraq,” Begg said.
The bank said that a prolonged closure of the Strait of Hormuz would cause major disruption to global oil trade, as most of the oil from Gulf producing countries passes through this route.
It added that in the event of a full-blown crisis, even strategic stocks in the US would be insufficient to cover losses.
The bank predicted that in the extreme case of a complete blockage of the Strait, crude oil could reach $100-150 per barrel, which would raise inflation expectations, limit the Fed’s scope for rate cuts and increase the risk of a global recession.
“We do not agree with the notion that silver can act as an alternative to gold as a portfolio risk diversifier given that approximately 60 percent of silver demand comes from industrial applications and the small market size,” the report said.
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Web Title-Middle East conflict could boost safe-haven assets, including gold.
