Middle East Update for your CARE Portfolio

On behalf of the CARE Investment Committee, we wanted to reach out personally, to explain in straightforward terms, what’s been happening in the Middle East this week and how it may influence financial markets and your investments.

Over the past few days, tensions in the region have escalated sharply. A major turning point came when the U.S. and Israel launched coordinated strikes inside Iran, resulting in the death of Iran’s Supreme Leader. Iran responded with widespread missile and drone attacks across the region, hitting locations in the UAE, Qatar, Bahrain, Oman, Jordan, Saudi Arabia, and Israel. These attacks also triggered closures of regional airspace and disruptions at major travel hubs such as Dubai International Airport.

This conflict has also directly impacted global oil markets. With fighting occurring around the Strait of Hormuz - a crucial shipping corridor that handles roughly 20% of the world’s total oil supply - markets are bracing for significant oil price volatility. Some vessels have already been halted, and major trading houses paused shipments due to safety concerns. Because this region produces more than a quarter of the world’s crude oil, any disruption tends to affect petrol prices, inflation, and broader market sentiment.

What does this mean for your CARE investments?

From an investment perspective, volatility during geopolitical events is normal. Energy markets often react quickly, while share markets may move more cautiously as investors assess the situation. This can be seen in the rather small downward reaction in the ASX200 this Monday. In the short term, we may see movements in oil‑related assets, airline stocks, and global market indices as they respond to uncertainty.

However, several things are worth keeping in mind. 

• Markets are resilient over time. Historically, even major geopolitical shocks tend to have short‑to‑medium‑term effects, with markets stabilising once clarity improves.

• Your portfolio is diversified. This is designed specifically to help manage periods like this by spreading risk across different regions and asset types.

• We are monitoring developments closely. As the situation evolves, we’ll assess whether any adjustments are needed, but at this stage there is no indication that we need to take any action.

Please rest assured that while the headlines are dramatic, your CARE investment strategy is built to withstand periods of uncertainty. If conditions change in a way that warrants any action this will be communicated through your adviser.

If you’d like to talk through any concerns or simply want a clearer sense of what to expect, please call your adviser as they are always happy to chat. 

Warm regards,

James

(On behalf of The CARE Investment Committee)