By Yoel Sardiñas.-
The last time you went to fill up your gas tank—or pay your gas bill—you probably noticed it cost more than it did a few months ago. It’s not your imagination. It’s the Middle East.
Since the conflict involving the United States, Israel, and Iran escalated in late February, the price of a barrel of crude oil has surged by more than 50% in just a few weeks, surpassing the $100 mark. And when oil prices rise, everything else follows suit: gasoline, transportation, food, and electricity. The chain reaction is direct and knows no borders.
This month, the International Monetary Fund (IMF) released its latest projections. The diagnosis is clear: global inflation is set to reach 4.4% in 2026—up from 3.5% last year—driven primarily by rising energy costs. Moreover, this is not a problem that affects everyone equally: countries with fewer resources and less economic stability will feel the impact nearly twice as acutely as their wealthier, more developed counterparts.
For the average citizen, this translates into the same reality: the cost of living rises, purchasing power erodes, and savings that aren’t actively working for you silently lose their value. Remittances stretch less far. Paychecks don’t always cover the bills. And if you have investments, market volatility triggers that impulse to panic—to run for the exits and sell everything off.
That is the most expensive mistake you can make.
Markets do not move in a straight line. They never have. Geopolitical conflicts create noise; noise breeds fear; and fear drives financial decisions we later come to regret. History is consistent on this point: those who sell in a panic are the ones who miss out on the subsequent recovery.
So, what can you do in times of uncertainty? Here are four concrete steps that can help you navigate these types of scenarios with greater clarity:
-Do not touch the funds you have already invested for the long term. Volatility is temporary; your financial goals are not.
-Diversify your portfolio, if you haven’t done so already. When oil prices rise, the energy sector benefits. Maintaining exposure to diverse industries and geographies helps cushion the blows, regardless of which country you are in.
—Keep investing, even if only in small amounts. During market downturns, every unit of currency you contribute purchases a greater quantity of assets. This strategy is known as dollar-cost averaging, and it stands as one of the most powerful tools available to the average investor.
—Review your emergency fund. In times of high inflation, that financial cushion needs to be more robust. If you had previously calculated enough coverage for three months of expenses, consider expanding it to six. Financial stability begins at home—not in the markets.
What happens far away isn’t really that distant. It shows up in your utility bills, in your grocery cart, or in your investment account. The world will always be subject to tensions; that is not a variable you can control. What you can control, however, is your level of preparedness.
Building a solid financial future isn’t about getting lucky with your market timing. It’s about maintaining discipline when the ground beneath you begins to shake.
- YOEL SARDIÑAS is an investor on the New York Stock Exchange and a successful public speaker. He is the Founder and CEO of Investep Academy. @yoelsardinasoficial
Notistarz/Staff
