BlackRock strategists said the US–Iran conflict-driven energy price surge will have a persistent negative impact on the European economy, while potentially benefiting energy infrastructure firms. They warned that buffers that absorbed the first-round shock earlier this year are fading and Europe is particularly vulnerable. Rising energy costs have knocked about 0.5% off euro-area GDP relative to a no-price-rise baseline. Strategists expect assets able to withstand future energy shocks—energy inf

BlackRock strategists said the US–Iran conflict-driven energy price surge will have a persistent negative impact on the European economy, while potentially benefiting energy infrastructure firms. They warned that buffers that absorbed the first-round shock earlier this year are fading and Europe is particularly vulnerable. Rising energy costs have knocked about 0.5% off euro-area GDP relative to a no-price-rise baseline. Strategists expect assets able to withstand future energy shocks—energy infrastructure—to attract increasing investor demand, and note that higher bond yields have depressed equities, leaving US and European utility stocks looking relatively attractive.