Stocks and Assets to Watch as Iran Tensions Grow

January 14, 9:44 am

Recent geopolitical developments in Iran, combined with the continued collapse of its national currency, the rial, have injected fresh volatility into global markets and pushed investors into a classic “risk-off” environment. As uncertainty rises, capital is rotating toward traditional safe havens and sectors that historically benefit from heightened geopolitical tension.

What’s Happening in Iran Right Now

Protests across Iran have escalated into one of the largest anti-government movements in years. As of mid-January 2026, death toll estimates from the unrest exceed 2,500, with the judiciary signaling trials and executions for detainees amid widespread crackdowns. International actors, including the U.S. and India, have urged citizens to exit the country as tensions rise.

The Iranian rial has continued to crater to historic lows, reflecting severe economic stress from sanctions, high inflation, persistent budget deficits, and systemic financial mismanagement.

A sovereign banking failure in late 2025 intensified public outrage and accelerated the economic downturn, exposing deep structural weaknesses in Iran’s financial system and fueling capital flight.

Stocks and Assets Benefiting from Tensions

As investors move away from riskier assets, capital is increasingly flowing into defensive sectors and hard assets.

Energy & Oil Majors

Exxon Mobil (XOM) – A large-cap integrated energy producer that benefits from higher crude prices and increased demand for refined products during supply-risk periods.

Chevron (CVX) – A diversified oil major with strong upstream exposure, positioning it to benefit from sustained geopolitical risk premiums in energy markets.

Elevated oil prices and uncertainty around Middle East supply routes continue to support earnings visibility and cash flows across major energy producers.

Defense & Security Contractors

Lockheed Martin (LMT) – A leading defense contractor that tends to benefit from rising global military spending during periods of geopolitical escalation.

Northrop Grumman (NOC) – A key supplier of advanced defense systems, often supported by increased procurement and long-term defense budgets during global instability.

Heightened geopolitical tensions frequently translate into expanded defense budgets and sustained demand for military hardware.

Alternative Currencies & Hard Assets

Bitcoin (BTC) – A decentralized asset that can attract capital during periods of currency devaluation and financial system stress, though it remains volatile in the short term.

Gold – A traditional safe-haven asset that typically benefits from geopolitical uncertainty, inflation fears, and declining confidence in fiat currencies.

Silver – A hybrid asset with both monetary and industrial demand, often moving alongside gold during risk-off environments while also benefiting from supply constraints.

Bitcoin’s reaction to geopolitical events is nuanced. While cryptocurrencies often experience short-term volatility during periods of acute conflict, they have historically shown resilience during prolonged financial stress. As a decentralized alternative to traditional financial systems, crypto can attract capital during currency crises and broader market dislocation, with some studies suggesting Bitcoin may act as a partial hedge during geopolitically driven market sell-offs.

Top Stocks and Assets to Watch

The table below highlights stocks and assets that may be impacted by developments in Iran, showing current prices, 6-month price changes, and AltIndex’s AI Score, which blends financial performance with alternative data signals to assess overall performance and momentum.

What Investors Should Monitor Next

The market’s direction will largely depend on whether the situation remains contained or escalates further.

Oil price trajectory: A sustained disruption or blockade of the Strait of Hormuz could push Brent crude above $100 per barrel, reigniting inflation concerns and reshaping global monetary policy expectations.

Central bank policy: Persistently high energy prices could force central banks to keep interest rates elevated for longer, pressuring growth stocks and risk-sensitive assets.

Policy developments: President Trump has offered to play a role in addressing the crisis. With our Trump Stock Alerts, investors are notified in real time when new statements or policy signals emerge that could impact specific stocks.

In situations like this, the biggest risk is reacting too late. Geopolitical events can shift markets quickly, and staying on top of policy signals, sentiment shifts, and capital flows can make the difference between chasing moves and spotting them early.

Get More Insights

Sign up and get access to a personalized dashboard, deeper insights, AI stock picks, stock alerts, weekly newsletter and much more.