Global hedge funds, pressured by the conflict in Iran, are shaking up their trading strategies.

Investment managers on the whole posted their worst monthly drawdowns in four years last month.

They’re now shorting European equities at record levels, betting that the continent will be hit hard by the war’s economic fallout, the Financial Times reported.

But they’ve also turned bullish on wheat for the first time in years, as a fertilizer shortage from the conflict drives up prices.

Reverberations go beyond equity and commodity markets: Hedge funds have piled into emerging market debt at historic highs, flooding the economies with “flighty” capital that leaves them more vulnerable to geopolitical shocks, the International Monetary Fund warned Tuesday.