Why Investors Must War-Proof Wealth Amid Resurgence Of 1970’s-Style Energy Risks

Nigel Green, Chief Executive Officer of global financial advisory organisation deVere Group says war-proofing wealth must be investors’ number one priority today amid escalating tensions across the Middle East.

The warning comes as missile strikes hit Iran’s South Pars gas field—the world’s largest, just as Qatar reports “extensive damage” at the Ras Laffan LNG terminal, and Brent crude surges more than 4%, pushing past $110 a barrel, highlighting the growing threat to global energy supply and trade flows.

A vessel has also been struck east of the Strait of Hormuz, underlining the growing risks to global shipping routes.

For Green, “investors need to review their wealth strategies following direct attacks on critical energy infrastructure and rising risks to the movement of oil and gas through key routes like the Strait of Hormuz.

“This is already feeding through into prices. And it appears to be escalating,” he added.

Roughly a fifth of the world’s oil supply passes through the Strait of Hormuz, alongside a substantial share of global LNG.

Qatar’s Ras Laffan alone accounts for around 20% of global liquefied natural gas output, much of which is destined for Asia.

Disruption at this scale carries serious implications for inflation, corporate margins, and global growth.

Nigel Green warns that the situation bears comparison with the energy shocks of the 1970s, when supply disruptions triggered prolonged inflation and forced a major repricing of risk across global markets.

According to him: “There are clear parallels with the 1970s energy crisis. Supply shocks of this nature rarely remain contained. They ripple through economies, push up costs, and force investors to rethink positioning.

“Markets are only beginning to adjust to that reality,” he stresses, warning further that “portfolios built around assumptions of stable energy prices and frictionless global trade are increasingly vulnerable.”

The deVere CEO adds that investors need to think carefully about how their wealth is positioned in this environment. War-proofing is about resilience—ensuring portfolios can withstand disruption rather than relying on stability,” he continues, outlining key considerations for investors seeking to strengthen resilience.

Gold should be considered as a diversifier within portfolios, he notes for example, arguing that “periods of geopolitical escalation typically increase demand for hard assets that can help offset currency volatility and market stress.”

With energy exposure also becoming more relevant, the deVere CEO believes that “oil and gas producers, particularly those operating outside high-risk regions, are likely to benefit from sustained supply constraints and elevated prices as markets adjust to disruption.”

Commodities more broadly may warrant attention he says, given that “rising energy costs often feed through into wider input prices across the global economy, reinforcing their role during inflationary periods.”

Continuing, he urges a review of sector exposure, following which “industries reliant on cheap fuel and uninterrupted global logistics, including airlines and parts of heavy manufacturing, face increasing pressure if disruption persists.

“In contrast, sectors linked to energy, defence, and infrastructure may see stronger demand as governments and companies respond to heightened risks.”

Geographic diversification remains important, Green says as “concentrated exposure to regions heavily dependent on Middle East energy, particularly parts of Asia may increase vulnerability, while broader global exposure can help reduce risk.”

For Green too, currency positioning should be assessed, since “energy-importing economies may come under pressure, while the US dollar and commodity-linked currencies have historically strengthened during periods of geopolitical stress and rising oil prices.”

Green says: “This is a structural shift in how risk is being priced. Energy infrastructure is being targeted, and supply chains are under strain in a way that echoes previous global shocks.

“Investors who remain positioned for calm conditions are taking on unnecessary risk.”

History, he concludes, “shows that energy shocks reshape markets in profound ways.

“The 1970s crisis drove inflation higher, altered capital flows, and rewarded those who were diversified across real assets, regions, and currencies.

“The current situation carries many of the same characteristics, with direct threats to supply, transport routes, and pricing stability.

“Investors should be taking a clear-eyed view of their exposure—considering diversification across asset classes, sectors, and geographies, and ensuring they are not overly reliant on any single outcome.”