Bob Graham – Riggs Asset Management Company

Hi there, this is Bob Graham with Riggs Asset Management Company.

Today I want to talk about what’s happening around the globe, specifically the conflict involving Iran, and how it could potentially affect the global economy, financial markets, and ultimately investment portfolios.

Before getting into the market discussion, I want to take a moment to acknowledge the soldiers, sailors, airmen, Marines, guardians, and the young men and women serving our country around the world.

Our thoughts and prayers are with them, and we hope they return home safely and can soon be reunited with their families and loved ones.

Now, turning to the markets.

Before this conflict began, portfolios were performing very well, and even since the conflict started about a week ago, portfolios have continued to hold up quite well.

So far, market performance has remained relatively stable.

At the same time, we are actively monitoring developments and making adjustments where needed. When we see opportunities, we take advantage of them, and where we see potential risks, we make changes to help mitigate those risks.

In other words, we’re remaining proactive and vigilant during this period.

At the moment, we believe portfolios are well positioned, and this environment may actually create opportunities for additional gains as we move through the remainder of the year.

Why the Strait of Hormuz Matters

When discussing this conflict, the key issue is not necessarily Iran itself as an economic player.

The larger concern is the Middle East region and the Strait of Hormuz.

The Strait of Hormuz is one of the most important energy transportation routes in the world.

Approximately 20% of the world’s energy supply passes through this narrow waterway every single day.

To put that in perspective:

• The world consumes roughly 100 million barrels of oil per day

• About 20 million barrels per day pass through the Strait of Hormuz

This includes:

• Crude oil

• Natural gas

• Refined petroleum products

Because of this, any disruption in that region can affect global energy prices.

Regions Most Affected

The region most affected by disruptions in Middle Eastern energy supply is Asia.

Countries in Asia receive approximately 80–85% of their energy imports from the Middle East.

As a result, markets in countries such as:

• Japan

• China

• Vietnam

• The Philippines

can be more sensitive to developments in the region.

At the moment, we are seeing some market reactions in those areas, although their economies have not yet been significantly affected.

If the conflict were to last for an extended period, however, we could begin to see broader economic impacts.

Europe is also somewhat exposed.

Depending on how it’s measured, as much as 40% of Europe’s energy supply can originate from the Middle East.

Impact on the United States

The United States is in a somewhat different position.

Today, the U.S. is largely energy independent and is actually a net exporter of both oil and natural gas.

That means the United States is less directly vulnerable to supply disruptions in the Middle East.

However, Americans can still feel the impact through higher gasoline prices and energy costs, which can affect both consumers and businesses.

For example, businesses with energy-intensive operations — such as manufacturing plants, industrial facilities, or mining operations — can see costs increase if energy prices rise significantly.

Oil Price Movements

We have already seen some movement in oil prices.

For example:

• West Texas Intermediate (WTI) rose from roughly $57 per barrel to about $81

• Brent crude, which represents North Sea oil, moved from about $60 to roughly $85 per barrel

If energy prices continue rising, that could potentially create inflationary pressure or slow economic growth.

However, at this stage, markets are not signaling that outcome yet.

Instead, current market activity suggests that investors are viewing this situation as more of a short-term disruption rather than a long-term structural issue.

Market Seasonality

It’s also worth noting that February and early March are often softer periods for the stock market.

Historically, markets sometimes experience weakness during this time of year before improving later in the spring.

As we move toward mid-March, it would not be surprising to see the markets begin to stabilize and potentially move higher.

Of course, we will continue watching these developments closely.

Portfolio Positioning

Going into 2026, we expected the market environment to be somewhat volatile, and we positioned portfolios accordingly.

Our outlook has been that markets would likely move two steps forward and one step back, and that’s largely what we’re seeing so far.

The important point is that your portfolios are currently in a strong position, and we believe they are well prepared for the environment ahead.

As always, we will continue monitoring global developments and adjusting portfolios when necessary.

If you have any questions about this update, or about your portfolio or financial planning, please reach out to your Riggs team member.

We’re always here to help in any way we can.

Thank you very much.