Iran-US tensions: Why stock market dips are a good chance to buy for UAE investors

Dubai: UAE residents investing in global stocks may see current market dips as opportunities to buy rather than signs of a long downturn, according to strategists at Goldman Sachs Group Inc.

Markets face pressure from the war in the Middle East and concerns that artificial intelligence could disrupt industries. Yet strong economic conditions and steady corporate earnings could limit how far markets fall, the team led by Peter Oppenheimer said in a note.

For UAE residents building savings through global stocks, ETFs or mutual funds, periods of market weakness often allow investors to buy quality assets at lower prices.

“We see correction risks as high given current valuations, but expect this to present a buying opportunity with relatively low risk of a more protracted and deep bear market,” Oppenheimer said.

Global stocks have had a volatile start to 2026. Markets first reacted to worries that rapid advances in artificial intelligence could reshape industries such as technology, finance and media.

Soon after, geopolitical tensions increased after conflict erupted in the Middle East.

For UAE investors, such swings in global markets highlight why long-term investing plans should not change based on short-term news.

Even so, Goldman strategists said overall market indexes remained fairly stable until recently. Instead of broad market falls, investors have shifted money quickly between sectors and individual stocks.

A wider spread of returns across regions and investment styles has pushed stock market valuations higher, the Goldman team said. Many sectors around the world now trade above their 20-year average valuations.

This follows a strong gains led mainly by the US, where technology and artificial-intelligence companies have driven much of the gains since 2023.

For UAE residents investing through global funds or brokerage platforms, that rally means markets may react more sharply to unexpected events.

The rally has also made markets more sensitive to geopolitical shocks that could affect global energy supplies.

“The longer this uncertainty persists, or the worse it gets for energy supplies, the higher the perceived risk to growth and inflation will be,” Oppenheimer said.

He added that geopolitical shocks in recent years have rarely caused lasting damage to financial markets.

Investors are closely watching developments in the Middle East after tensions raised concerns about disruptions to energy supplies.

The conflict between the United States and Iran has threatened shipping through the Strait of Hormuz — a narrow waterway that carries about one-fifth of the world’s crude oil and significant liquefied natural gas supplies.

Oil and gas prices surged earlier in the week as fears grew that shipments through the strait could be disrupted.

For UAE residents, energy price swings matter because they can influence inflation, regional economies and local stock markets.

Markets steadied after U.S. President Donald Trump said the U.S. Navy was ready to escort oil tankers and that Washington would provide insurance support to shipping companies.

“That announcement tempered the spike in oil prices that has persisted today,” said Patrick O’Hare, an analyst at Briefing.com.

Financial markets have remained volatile as investors assess the economic impact of the conflict. Tensions between the United States and Iran have raised fears of supply disruptions through the Strait of Hormuz.

Energy prices initially jumped as concerns grew that the waterway could be affected. Higher oil prices can push up inflation and slow global growth.

Sentiment improved after the United States signalled it was ready to help secure oil shipments and support shipping companies operating in the region.

Analysts said those comments helped calm immediate worries about energy supply risks. “That announcement tempered the spike in oil prices,” O’Hare said.

Still, investors remain cautious as the situation continues to evolve.

Equity markets across Asia and the Gulf have reacted quickly to developments because many economies depend heavily on energy shipments moving through the Strait of Hormuz.

Any disruption could affect fuel costs, trade and economic activity.

For UAE investors, this means regional stocks in Dubai and Abu Dhabi — as well as global energy companies — may see sudden price swings.

Energy intelligence firm Kpler said tanker traffic through the Strait of Hormuz has dropped sharply in recent days as shipping companies reassess risks.

Markets in the Gulf have also moved up and down as investors evaluate the possible impact on regional economies and energy markets.

Even with the uncertainty, analysts say global markets have so far remained resilient.

Goldman strategists say the wider economic environment still supports equities despite the volatility.

Economic data from major economies in early 2026 shows steady growth, while corporate earnings expectations remain strong across many sectors.

Central banks in developed markets have also signalled a more stable interest-rate environment after aggressive rate increases in earlier years.

For UAE residents investing for long-term goals such as retirement or children’s education, such conditions often create opportunities to add investments during market dips.

Taken together, these factors suggest that market corrections may offer buying opportunities rather than signal the start of a prolonged downturn, the Goldman analysts noted.