Bank of America warns "oil-importing" stock markets are bleeding, with safe-haven funds shifting to U.S. technology and defense

CryptoWorld News reports that Michael Hartnett of Bank of America states that a prolonged Iran war poses a risk to the rebound driven by bank stocks in Japan and Europe, as investors are abandoning these markets and shifting into oil and the US dollar. The strategist points out that investors may turn to assets that benefit from “long-term conflicts,” at the expense of countries like South Korea, Japan, and European oil importers with minimal energy stock exposure. US tech stocks and the global defense industry are likely to benefit from this rotation. Since the US and Israel launched attacks on Iran and the conflict escalated, this trend has already begun to emerge. European stock markets are heading for their worst weekly decline since the tariff turmoil in April last year, and the Nikkei 225 index in Japan is also affected. The Korean stock market experienced intense volatility, with the composite index hitting both record lows and the largest single-day gain since 2008.