UBS: Market overreaction to Middle East tensions UBS stated that the market often overreacts to geopolitical events, and the current Middle East crisis is no exception. Unlike previous oil shocks, this conflict poses almost no threat to supply, with Iran accounting for only 1.6% of global production and no supply disruptions reported. UBS suggests buying on dips, expecting only a mild pullback in the market. It maintains a bullish outlook on global stocks, defense, and gold, predicting that gold prices will reach $3500 per ounce by the end of 2025. Conclusion: UBS believes that market panic is exaggerated and expects policy, wage, and AI driven growth to support the market.