March 2023 saw a sharp volatility in global equity markets, largely influenced by the Iran war and a significant surge in crude oil prices. According to Aswath Damodaran, a valuation expert, the Brent crude price jumped by 49.9%, while West Texas Intermediate (WTI) rose by 48.6%, driven by disruptions in Gulf oil production. This volatility did not stem from panic but rather from a recalibration of investor expectations amidst multiple uncertainties, including the conflict's duration and its macroeconomic implications.

The US 10-year Treasury yield increased from 3.97% at the end of February to 4.3% by March's end, indicating rising inflation expectations. Interestingly, despite the macro shock, the equity risk premium for the S&P 500 only increased modestly from 4.37% to 4.77%. Additionally, traditional safe havens like gold saw a decline of over 10%, while bitcoin gained, suggesting a shift in investor behavior. Damodaran emphasized that the uncertainties remain unresolved, with potential outcomes ranging from a quick resolution to a prolonged conflict that could further entrench inflation and slow global growth.