The Iran Crisis Won't Wreck Your Portfolio - But Panic Might
Iran in the headlines, oil at $112, sell button calling. The UK investors who hit it during the Gulf War, 9/11 and Iraq are still trying to break even on the bounces they missed.
Major geopolitical shocks and recovery
| Crisis | Year | Initial market hit | Recovery |
|---|---|---|---|
| Gulf War | 1990-91 | Sharp fall | Within months |
| 9/11 attacks | 2001 | -12% in a week | Within 2 months |
| Iraq War | 2003 | Already priced in | Stocks rallied at start |
| Russia-Ukraine war | 2022 | Global sell-off | Recovered within months |
Every shock felt different. None permanently derailed a diversified investor.
Key takeaways
Markets have historically survived and recovered from major crises like the Gulf War, 9/11, and the Iraq War.
Timing the market rarely works because sharp sell-offs and recoveries often occur together, making it difficult to pick the bottom.
Automating your investments through consistent, scheduled contributions helps exploit market volatility without needing to react emotionally.
If you feel intense panic about selling your investments, consider whether you truly understand the underlying value of the assets you hold.