BlackRock Investment Institute said government bond yields are likely to stay elevated as the Iran war adds to already building inflation pressures. Strategists Jean Boivin and Wei Li said higher oil prices could force central banks to keep policy tight, weakening sovereign bonds as inflation erodes real returns and diversification benefits. The firm favors US and emerging-market equities, citing AI-driven growth, and sees opportunities in power and infrastructure tied to energy security and AI

BlackRock Investment Institute said government bond yields are likely to stay elevated as the Iran war adds to already building inflation pressures. Strategists Jean Boivin and Wei Li said higher oil prices could force central banks to keep policy tight, weakening sovereign bonds as inflation erodes real returns and diversification benefits. The firm favors US and emerging-market equities, citing AI-driven growth, and sees opportunities in power and infrastructure tied to energy security and AI expansion.