IRAN CONFLICT THREATENS KEY MARKET TRADES UBS warns the escalating Iran conflict is putting major market bets at risk, with strategist Bhanu Baweja highlighting disruption in the Strait of Hormuz as the critical factor. Even partial supply blockages could hit oil and global markets hard, as supply is useless if it can’t reach buyers. Tanker traffic is already falling, and risks are higher than in recent Iran-Israel tensions. UBS cautions that today’s high equity valuations leave markets more exposed, with potential reversals in popular trades (large vs small cap, growth vs value). It also flags risks to bond steepener bets and expectations of a weaker dollar, especially if oil prices rise. Bottom line: how long shipping is disrupted will drive market impact.(*Walter Bloomberg)