Markets are under pressure as the war in the Middle East sends oil prices sharply higher, fuelling volatility and raising concerns about inflation and economic growth.
BNN Bloomberg spoke with Allan Small, senior investment advisor at Allan Small Financial Group, iA Private Wealth, about how surging oil prices and geopolitical uncertainty are affecting different sectors and where investors may still find opportunities.
Key Takeaways
- Oil prices briefly surged toward US$120 a barrel amid the Middle East conflict, heightening concerns about inflation and economic growth.
- Potential releases of strategic oil reserves by G7 countries may calm markets temporarily but are unlikely to provide a lasting solution.
- Industries with heavy fuel exposure — including airlines, hospitality and transportation — face greater pressure when energy prices rise.
- Bank stocks can also weaken if higher oil prices slow economic growth and increase uncertainty about future lending conditions.
- Some investors see opportunity in large-cap technology and software stocks, arguing they are less directly affected by geopolitical conflict.
Read the full transcript below:
ROGER: Markets are under pressure this morning as the war in the Middle East continues. This comes with the price of oil, at one point hitting nearly $120 a barrel earlier today. Joining us now to talk about it is Allan Small, senior investment advisor at Allan Small Financial Group, iA Private Wealth. Allan, thanks, as always, for joining us.
ALLAN: Great to be here.
ROGER: We’re looking at oil. Last time I checked, I think it was about $110. What are your thoughts? Where do you see it going right now? Oh, it’s bounced back down. It’s back near $100 now. It’s all over the place.
ALLAN: Yeah, definitely. We saw some relief in the wee hours of the morning when the G7 announced they may release some of the oil reserves that each country has built up. Obviously, that is an option for countries like the United States, which has strategic oil reserves it can tap into. We’ve seen them do that in the past.
I think that brought a bit of calm to the oil market and pushed prices lower. We saw Brent crude and WTI at one point this morning almost trading at the same price. Normally Brent trades a couple of dollars above West Texas Intermediate. Overall, the heightened situation in the Middle East is going to keep oil prices elevated.
But for investors in energy stocks, you have to be a little bit careful. We saw Canadian Natural Resources earlier on your show at record highs, over $60 a share, and some other oil names in the U.S. and globally are also rising. I think at some point oil prices will pull back. Whether that comes from developments in the Middle East, releases from G7 reserves or announcements from OPEC, we’ll have to see. Oil is obviously very volatile right now, but over the next few weeks we could see prices decline to lower levels.
ROGER: And going back to the last time the G7 released oil, what kind of impact did that have? Was it long term or more of a short-term fix?
ALLAN: I think it’s more of a short-term fix — a Band-Aid solution — until whatever is happening in the Middle East works its way through.
We don’t know where the war is headed. But historically, wars don’t last forever, and markets eventually recover. We see volatility during the conflict, but a few months after a war ends — whether through a ceasefire or some type of agreement — markets typically rise again. Oil pulls back and volatility declines.
If the G7 does release more oil, it would likely be temporary. They cannot keep drawing from reserves indefinitely. The hope would be that it helps stabilize prices long enough until there is some resolution in the Middle East.
ROGER: Crises can also create opportunities. Where are you looking right now?
ALLAN: It’s interesting. Even today you’re seeing the Nasdaq not down nearly as much as you might expect. The Dow has been hit harder. The TSX is mixed because oil is higher and gold has also moved up.
But the Nasdaq is where I’m seeing opportunity. Large-cap tech names like Microsoft and Meta look extremely cheap to me. I thought they were cheap even before the conflict in the Middle East began, and I still think they are.
These companies have the ability to move higher even in the current environment. Software stocks like ServiceNow and Salesforce actually had strong weeks recently despite the conflict. I think tech was sold off before the war and valuations became attractive. Investors can potentially take shelter in big-cap tech because they are less directly affected by events in the Middle East than other sectors.
ROGER: Any concern about Middle Eastern investors pulling money out of those companies?
ALLAN: There’s always some concern. But over time, I think those investors will continue allocating money into areas like data centres and artificial intelligence. Countries like Saudi Arabia and the UAE have been investing heavily in those sectors.
I don’t anticipate foreign investors pulling money out. Instead, they will likely continue looking for places to invest, even during uncertain periods. That should remain positive for large-cap tech companies.
ROGER: What are you shying away from right now?
ALLAN: Many investors are avoiding areas like airline stocks and the hospitality sector. Banks have also been hit hard. That said, I’m starting to look at banks again.
For example, U.S. banks like JPMorgan and Bank of America have pulled back quite a bit from their highs, and they could represent buying opportunities once we get through the current situation. Banks are the lifeblood of the economy, and if growth slows because of higher oil prices and rising costs, that will affect them.
Markets are forward-looking mechanisms. When bank stocks decline, it often signals concerns about economic growth if this conflict continues. Investors are asking what happens if the war drags on for another month or longer and what that could mean for global economies. That’s what the market is trying to price in right now.
ROGER: We’ve got to wrap it up there. Allan, thanks as always for joining us.
ALLAN: Thank you.
ROGER: Allan Small, senior investment advisor at Allan Small Financial Group, iA Private Wealth.
---
This BNN Bloomberg summary and transcript of the March 9, 2026 interview with Allan Small are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
