Citi: Be mindful of energy in times of geopolitical risk

Citi says the impact of Middle East tensions on stocks will likely be on energy prices. With Israel-Hamas concerns over oil supplies rising, Citi says the main driver of the conflict’s impact on stocks will likely be energy prices. “Historically, stocks are typically higher 12 minutes after geopolitical conflicts begin, despite initial volatility. However, when geopolitical risks trigger energy crises, stocks have seen a significant decline,” Groman said in a note on Tuesday. Significant “geoeconomic risk” was already looming over global stocks even before the war began, Groman added.