Summary

• Markets have moved in bursts as the Strait of Hormuz has opened and closed, keeping energy prices and volatility sensitive to each shift in supply risk.
• Active managers have moved from initial reaction to more measured positioning, adjusting incrementally rather than repositioning portfolios broadly.
• Energy underweights are being reduced as supply risks remain unresolved despite periods of reopening.
• Positioning changes are concentrated within sectors, particularly where companies are most exposed to energy costs and supply chain disruption.
• Earnings and margin trends will guide the next phase of positioning as the impact of higher energy prices becomes clearer.

The Iran conflict has turned energy markets into a moving target, with oil prices adjusting as expectations around Strait of Hormuz supply risk shift. The initial market shock drove a sharp repricing in oil and a

2.72K Followers