Iran Applies ‘High Oil Price’ Tactics Learned from Vietnam War... Stocks That Still Profit [Weekend Money]

Oil Prices Expected to Remain High Ahead of Midterm Elections
Central Banks Under Pressure to Raise Interest Rates
Focus on Beneficiaries of Rate Hikes and Earnings Leaders

The war between the United States and Iran, which was initially expected to conclude in a short period, is now becoming prolonged. The securities industry analyzes that Iran is likely to actively leverage the “high oil price environment” as an asymmetric tactic, referencing past strategies used during the Vietnam War.

According to DB Securities on September 27, researcher Hyunki Kang stated, “The U.S.-Iran war has now entered its seventh month,” and noted, “It is important to pay attention to the fact that Iran’s current approach closely resembles that of North Vietnam during the Vietnam War.”

Iran’s Asymmetric Tactics Resemble North Vietnam... Signs of a Prolonged War

Kang focused on the possibility that Iran is referencing North Vietnam’s previous strategies when making decisions today. At that time, North Vietnam pursued long-term strategies designed to gradually weaken American public support for the war over several years.

Kang explained, “North Vietnam simultaneously engaged in war and negotiations, with a particular focus on instilling in Americans the perception that the conflict would not end easily. In the current conflict as well, there were negotiations after initial clashes, but the situation has once again entered a heightened state of tension.”

He further pointed out, “Despite the overwhelming military power of the United States, Iran is responding with asymmetric tactics, which is lowering expectations for a quick resolution to the conflict.”

Insurance and Banks Favored; Growth Stocks Narrowed Down to Cosmetics and Semiconductors

The prospect of a prolonged conflict could result in international oil prices remaining elevated. In this scenario, global central banks may maintain or intensify their rate hike stances, putting overall pressure on stock markets.

Kang added, “(Iran’s actions) could lead to oil price volatility ahead of major U.S. elections. From an investment strategy perspective, it is important to consider that oil prices may remain high for a considerable period going forward.”

What sectors can withstand the ongoing pressures of high oil prices and interest rate hikes? Kang pointed out, “Since central banks are raising rates following the increase in oil prices, investor preference for sectors such as insurance and banks could increase.”

He further noted, “Among growth stocks, investors are likely to focus their strategies on companies with clear visibility for improved performance, which is why sectors such as cosmetics and semiconductors are consistently being discussed.”

This content was produced with the assistance of AI translation services.