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BlackRock’s Kapito Warns Investors Are Mispricing Iran Risks

Richard Henderson
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⚡ Quantum Brief
BlackRock President Rob Kapito warned investors are underestimating the economic fallout from the Iran conflict, predicting prolonged market disruption even if hostilities end soon. Speaking at Melbourne’s Asia Pacific Financial and Innovation Symposium, Kapito projected global growth could shrink by up to 2 percentage points due to war-related instability. Inflation may surge by a similar margin, he cautioned, as supply chain disruptions and energy price volatility persist beyond any immediate ceasefire. The conflict’s ripple effects—rising oil costs, trade barriers, and geopolitical uncertainty—could outlast the war itself, reshaping investor risk assessments. Kapito’s remarks underscore how financial markets may be mispricing the conflict’s long-term drag on economic recovery and inflation trajectories.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000War With Iran:BlackRock Inc.

President Rob Kapito said investors may be underestimating the risks stemming from the Iran war, which are likely to weigh on growth and drive inflation higher even if the conflict ends soon.Growth could be hit by as much as two percentage points, while inflation may rise by a similar margin even if the war ends shortly, warned Kapito at the Asia Pacific Financial and Innovation Symposium in Melbourne on Thursday.

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