Energy chief Chris Wright says Iran oil shock will last ‘weeks, not months' — but past wars triggered market sell-offs. How investors can prepare

“We have a temporary period of elevated energy prices, but it will not be long,” he said during a CBS News appearance on Face the Nation with Margaret Brennan (1).

He also gave CNN’s Jake Tapper a similar refrain while appearing on State of the Nation: “Look, you never know exactly the time frame of this, but, in the worst case, this is a weeks, this is not a months thing (2).”

Energy markets have been on edge as conflict in the Middle East has raised concerns about oil supply disruptions through the Strait of Hormuz, one of the world’s most critical energy chokepoints.

U.S. intelligence has detected signs that Iran may deploy naval mines in the Strait as well, with some sources suggesting that Iranian vessels have already placed some in the waterway (3). As of March 10th, the U.S. has destroyed 16 Iranian mine-laying ships in the area.

Even small disruptions in the region can ripple through global markets. Roughly one-fifth of the world’s oil supply moves through the Strait, making it one of the most sensitive points in the global energy system (4).

When tensions escalate there, traders often push oil prices higher as a precaution — a phenomenon sometimes referred to as a “fear premium.”

That volatility can quickly spread beyond energy markets.

Higher oil prices tend to raise transportation and manufacturing costs across the economy, which can push inflation higher and rattle financial markets at the same time.

But energy shocks have a history of rippling through global markets long after policymakers predict calm.

Geopolitical uncertainty — especially around oil supply — has a history of triggering months (and years) of volatility across stocks, commodities and currencies.

For investors, that uncertainty can be unnerving. But historically, these market disruptions have also created opportunities for those willing to stay invested.

The history of oil supply crisis-rattled markets

Government officials often emphasize that market disruptions are temporary, and they’re not wrong. That said, these disruptions can take a lot of time to unwind as conflicts simmer down.

When Russia invaded Ukraine in February 2022, global markets free-fell amid fears of energy shortages and economic disruption.

The S&P 500 plunged roughly 21% in the first half of 2022 as oil prices surged and investors fled to safer assets (5). That turbulence was slow to fade. Markets remained volatile for months, and the index eventually entered a bear market by June 2022 (6).

At the same time, Brent crude briefly surged above $120 per barrel in 2022, its highest level in years (7).

It wasn’t until November 2022 that the markets started to recover.

The episode showed how energy-related geopolitical shocks can reverberate through markets long after the initial headlines.

Market volatility can create opportunities for long-term investors

While global crises can shake up markets in the short term, long-term investors often view downturns as opportunities.

In fact, many professional investors argue that periods of fear can create attractive entry points.

Warren Buffett once famously advised investors to “be fearful when others are greedy and greedy when others are fearful,” a philosophy rooted in buying quality assets when prices fall (8).

Investors who remain invested through economic downturns tend to outperform those who try to time the market. Research from JPMorgan Asset Management shows that missing just the 10 best days in the market over 20 years can cut overall returns nearly in half (9).

For example, a $10,000 investment could grow to roughly $64,000 over 20 years if you stay fully invested. But missing the market’s 10 best days could leave you with only about $29,000 — less than half what you would have made by just staying invested.

Trust the ‘set it and forget it’ method

Trying to time the market is notoriously difficult. Dollar-cost averaging — investing small amounts regularly regardless of market conditions — is a safer long-term strategy.

It allows investors to buy more shares when prices fall and fewer when they rise.

The beauty of ETF investing is its accessibility — anyone, regardless of wealth, can take advantage of it.

Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.

Signing up for Acorns takes minutes. Just link your card and Acorns will round up each purchase to the nearest dollar, investing the difference into a diversified portfolio. You can also set up a recurring monthly contribution to supercharge your savings.

With Acorns, you can invest in a dividend ETF with as little as $5 — and if you sign up today and set up a small monthly deposit, Acorns will even add a $20 bonus to your account.

Focus on building a diversified portfolio

Another strategy during volatile periods is diversification.

Broad-market funds that track indexes like the S&P 500 allow investors to gain exposure to hundreds of companies at once, rather than betting on individual stocks.

That diversification can help reduce risk when markets swing.

Platforms like Robinhood are designed to make investing simpler and more approachable.

If you prefer a more hands-on approach, you can also buy and sell individual stocks, fractional shares and options (for qualified traders) — backed by 24/7 support. Stocks, ETFs and their options trades are commission-free.

With access to popular ETFs like the Vanguard S&P 500, you can build diversified exposure without needing to pick individual stocks.

The platform also offers both a traditional IRA and a Roth IRA, so you can choose the tax strategy that fits your retirement plan.

With its recurring investment feature, you can set up automatic investments of your preferred fractional shares, stocks and ETFs on your own schedule.

Over time, this helps make investing a habit and steadily grows your portfolio.

Earn up to 3% on eligible account transfers to a taxable Robinhood account through March 25th. Risks and terms apply. Robinhood Gold ($5/mo) subscription may apply.

Protect yourself by hedging uncertainty

Even diversified stock portfolios can experience sharp swings during periods of tension.

Some investors allocate a portion of their portfolios to alternative assets — investments that may hold their value or even rise when stocks struggle — to offset this risk.

Historically, commodities like gold have often served this role during periods of economic stress, geopolitical conflict and high inflation.

Gold, in particular, has long been viewed as a “safe haven” asset. According to data from the World Gold Council, gold has frequently performed well during times of market volatility and geopolitical uncertainty (10).

One way to invest in gold while also providing significant tax advantages is to open a gold IRA with Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the protective benefits of investing in gold, potentially making it an attractive option for those looking to hedge their retirement fund during wartime.

Download their free information guide today to find out how to get up to $10,000 in free silver on qualifying purchases.

Consider adding real estate

Real estate has historically played an important role in diversifying many portfolios since property values and rental income don’t always move in lockstep with the stock market.

Property investments have long been a proven source of steady, passive income for high-net-worth investors. It’s no wonder that real estate accounts for nearly 25% of the typical family office portfolio (11).

However, the time, effort and costs involved in managing and maintaining multiple properties prevent many from investing. So unless you’re a hedge fund titan or an oil baron, you’ve been shut out of one of the most profitable corners of the market.

That’s where mogul comes in. This real estate investment platform offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or early morning tenant calls.

Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings at a fraction of the usual cost.

Each property undergoes a vetting process that requires a minimum 12% return, even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Real assets secure every investment and are not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.