Rising oil prices linked to the Iran conflict are adding pressure on stocks, with uncertainty around energy supply and infrastructure risks clouding the near-term outlook.
BNN Bloomberg spoke with Yung-Yu Ma, chief investment strategist at PNC Financial Services Group, who said markets are pricing in moderate disruption but warned that escalating risks and damage to energy infrastructure could quickly shift sentiment.
Key Takeaways
- Markets are pricing in moderate energy disruption, though severe infrastructure damage remains a key tail risk.
- Elevated oil prices, higher bond yields and widening credit spreads are creating a growing headwind for equities.
- Historical conflicts show initial oil price spikes are often not sustained, highlighting reversal risk.
- Energy security, renewables and related infrastructure are likely to see increased long-term investment.
- Investors are advised to remain patient and avoid aggressive dip-buying amid ongoing uncertainty.
Read the full transcript below:
LINDSAY: Well, higher oil prices are weighing down the market once again, as efforts to end the war in Iran show few signs of meaningful progress. Let’s get some perspective from Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. It’s great to have you join us this morning. Good morning.
YUNG-YU: Thanks, Lindsay. Good morning. Great to be here.
LINDSAY: I wonder what you make of it. Every day, it seems like we’re waking up to a different reaction from the markets this week. Do you think the markets are underestimating the risk of a more severe disruption to global energy supplies?
YUNG-YU: Well, that’s definitely a risk, and it’s still highly uncertain how this is going to play out. I think there’s a degree of that priced in, but that is not the odds-on scenario right now in the market, just based on pricing. That is not to say there won’t be further escalation, but escalation can happen with greater disruption, or escalation can happen with only minor disruption to energy and an eventual calming of those markets.
So I think there’s just so much uncertainty now, it’s very difficult for investors to position around what look like binary events that could come down to the wire in terms of how this plays out. There are some indications that U.S. Vice-President JD Vance may be heading to Pakistan in the coming days to help move negotiations along. So the uncertainty is very high right now. It’s a challenge for investors.
LINDSAY: And if markets are pricing in a couple of months of elevated oil, what could cause that timeline to shorten or extend further?
YUNG-YU: Well, the big risk is significant and sustained damage to energy infrastructure — damage that can’t be reversed or repaired within a few months. And not just five or 10 per cent of the region’s energy, but 30 to 40 per cent. That’s the tail risk, and it’s very difficult to price in.
It’s also difficult to know, even in the event of escalation, how pervasive that damage could be. When we think about past conflicts — the 2003 U.S. invasion of Iraq or the 2022 Russian invasion of Ukraine — very different scenarios can play out, and often in unexpected ways, even after escalation. So right now, uncertainty is causing investors to pause. It is a time for patience and to focus on the long term.
LINDSAY: It’s so hard to think about the long term when there’s so much uncertainty. But based on what we do know — including damage to some energy infrastructure in the Middle East — do you think we’re entering a period where energy security and renewables are long-term winners?
YUNG-YU: I do think so. Investors should think about what happens on the other side of this conflict, whether that’s a month, three months or six months from now. Energy security, renewable energy and green energy are likely to be key areas of focus globally.
Some countries are faring better than others amid current energy strains, but even those in a stronger position are likely to prioritize energy security more going forward. That whole supply chain — renewable energy, energy security and supporting infrastructure — is going to be a major focus in the coming years.
LINDSAY: Putting energy aside for a moment, given the recent pullback, is this a good opportunity for investors to buy the dip?
YUNG-YU: I think it’s a good opportunity for investors to be patient and not buy the dip here. There’s just too much uncertainty. We’re not at a washout stage — we’re not seeing panic selling or mass dumping of shares like we saw after events such as 9/11.
There’s nothing to indicate that now is the time to be aggressive. If investors have cash and a long-term plan to scale into markets over time, this could be a reasonable point to follow that plan. But becoming overly aggressive or changing a long-term strategy in this environment is probably not advisable.
LINDSAY: So just hold off until there’s more clarity?
YUNG-YU: Yes, and focus on the long term. Opportunities could arise next week, next month or three months from now. But we don’t think today is the time to add additional risk beyond what’s already in an investor’s long-term plan.
LINDSAY: We’re also seeing moves in precious metals and bonds. Gold is selling off, and bonds are under pressure. How do you see the investment landscape evolving?
YUNG-YU: Those shifts in precious metals have been interesting. I think they will bottom around the same time equities do. Gold still has long-term positive attributes, including central bank demand. Silver also has strong long-term fundamentals, especially given its role in renewable energy and electrification.
Right now, though, these assets are being used as a source of liquidity, as investors sell winners and raise cash. At the same time, interest rates are expected to remain higher for longer, with central banks not leaning toward cuts, which reduces the short-term appeal of precious metals. I wouldn’t fight that trend, but it could present opportunities in the coming weeks.
LINDSAY: And why might utilities be considered defensive growth?
YUNG-YU: We like utilities here. They play a key role in infrastructure buildout. The regulated side of utilities in the U.S. may see price increases as costs rise, while the renewable side should gain traction due to higher energy demand, data centre growth and the broader push for energy security.
Utilities offer a mix of stability and growth tied to long-term structural trends, particularly around energy and infrastructure.
LINDSAY: We’ll have to leave it there. Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. Thanks for your time.
YUNG-YU: Thanks, Lindsay.
---
This BNN Bloomberg summary and transcript of the March 26, 2026 interview with Yung-Yu Ma 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.
