Iran War Forces a Rethink of the 'Sell America, Buy Asia' Trade

The Iran war is prompting investors to rethink the prevailing “Sell America, Buy Asia” play as Asia’s equities face added risk from oil shocks and Hormuz‑route disruptions. A stronger dollar and profits taking from AI-driven rallies are triggering a rotation back into the U.S., with the MSCI Asia Pacific index down about 6% for the week while the S&P 500 was essentially flat. A sustained oil supply shock could slow global growth and weigh on earnings in oil‑importing Asian economies, while the U.S. benefits from energy independence and safe‑haven demand; the near‑term outlook hinges on energy prices and inflation trajectories more than Asia‑specific policy changes.