Analysts warn: This Middle East crisis may be different, and advise against buying any dips immediately.

According to Odaily, the situation has become increasingly chaotic as Iran launched missiles at US military bases in Gulf cities, airlines suspended flights, and oil tankers and other cargo vessels halted passage through the Strait of Hormuz. Rong Ren Goh, portfolio manager of the fixed income team at Eastspring Investments, stated that tail risks in the Middle East have increased. The market will reprice, shifting from a geopolitical shock to a regime risk shock and the possibility of prolonged conflict, rather than just retaliatory actions—unless Iran signals a willingness to negotiate. Analysts believe a bigger risk lies in the market's complacency. The market has consistently assumed that the impact of the conflict would be limited and has dismissed comparisons to the 1979 Iranian regime change. Barclays analysts noted that history strongly suggests not to chase rallies when conflict breaks out, but rather to "sell the fact." However, what is concerning is that investors have now become accustomed to this "sell the fact" mindset and may be underestimating the risk of the situation spiraling out of control. It is advised not to buy any dips immediately. If the stock market pulls back significantly, for example, if the S&P 500 drops by more than 10%, then a buying opportunity may arise—but not yet. (Golden Ten Data)