Investors thought they had protected themselves against chaos with diversified portfolios, but the Iran war showed that even the best-laid plans can fail. During the week, stocks and bonds fell together as oil prices rose and supply disruptions caused inflation to surge. This led to higher interest rates, breaking a long-standing rule of thumb: falling bond yields when there’s a crisis. The result was the worst combined performance for both stocks and bonds since April, leaving investors unsure if the bigger threat is inflation or an economic slowdown.
Source: https://www.bloomberg.com/news/articles/2026-03-06/wall-street-s-safety-net-is-giving-way-as-iran-war-hits-markets