Geopolitical risks are not someone else's problem—the impact on individual assets in the global era

Do you think the international conflicts happening in the Middle East are unrelated to your daily life? In reality, that is a major misconception. Every time geopolitical tensions escalate, personal assets and lifestyles are affected in unexpected ways—from gasoline prices to investment portfolios. As the confrontation between the US and Iran deepens, it’s important to understand how this “outsider issue” can become a tangible threat.

Why Middle Eastern Conflicts Directly Impact Our Gasoline Prices

The Strait of Hormuz is not just a geographic passage; it’s a lifeline for the global economy. About 30% of the world’s oil shipments pass through this strait. When US and Iranian warships face off and missiles are targeted, international oil prices can surge by over 40% within hours.

This chain reaction of rising oil prices directly hits your wallet. Gasoline at 95 octane could increase by more than 2 yuan per liter, which isn’t just a rise in fueling costs. Delivery fees quietly go up, and everyday items like plastic products and cosmetics also experience price hikes. In a globalized economy, a regional geopolitical crisis can ripple through consumer daily expenses, creating a system where local conflicts influence your everyday spending.

The Invisible Mechanism of Asset Shrinkage Investors Must Know

Financial markets are extremely sensitive to geopolitical risks. When the likelihood of conflict increases, market sentiment shifts dramatically. High-risk assets like Bitcoin are among the first to react to this anxiety. As of February 2026, Bitcoin trades around $69,510 with a 24-hour volatility of +0.90%, but if a geopolitical crisis rapidly worsens, these figures can fluctuate sharply in an instant.

Historically, during heightened conflicts or uncertainty in the Middle East, high-risk assets including Bitcoin have experienced sudden drops of 3% to 5%. Without realizing it, the value of your investment portfolio can evaporate. What’s more concerning is that these fluctuations are unpredictable. The correlation with stock markets can change moment by moment, and traditional risk management methods may become ineffective in such scenarios.

Supply Chain Disruptions and Rising Living Costs

Prolonged geopolitical tensions can have more severe impacts. The supply chain for critical raw materials used in chip manufacturing could be obstructed, leading to price increases across electronic products. Smartphones, computers, home appliances—all may face a new wave of price hikes.

Additionally, reduced efficiency in cross-border logistics can increase shipping costs, which tend to push up online shopping delivery fees. As a result, everyday purchases and electronic device costs gradually rise, inflating overall living expenses.

In the Era of Globalization, Facing Reality: It’s No Longer Someone Else’s Problem

So, how should individuals respond? First, those who drive frequently should consider keeping their tanks topped up in anticipation of rising gasoline prices. In terms of investments, it’s wise to avoid high leverage, consciously balance risk assets with safe assets, and focus on diversifying your portfolio’s risk.

Most importantly, approach fluctuations in essential goods prices rationally. Instead of panic buying out of anxiety, calmly assess what you truly need and plan your purchases carefully—this is key to managing household finances.

In the age of globalization, geopolitical conflicts are no longer distant events; they inevitably impact personal daily life. Instead of viewing news as mere information, consider how it affects your assets and lifestyle. Taking an active, conscious stance is essential. It’s not someone else’s problem—it’s about facing these realities as your own. That’s the first step to navigating the global era wisely.