New research from the IA finds investors holding steady despite Middle East conflict

The Investment Association, in partnership with Opinium, surveyed 1,000 investors between 14 – 20 April 2026 to understand their attitude towards markets and investments following the outbreak of conflict in the Middle East.

Their research found that nearly half of investors surveyed (47%) are not planning to make immediate changes to their portfolios in direct response to the conflict in the Middle East, choosing to remain steady in their allocations despite recent market turbulence.

The research indicates that most investors remain focused on their long-term goals. 52% of those surveyed stated that their confidence in making investment decisions in the current environment has remained stable, while 56% said their confidence in investment for the long term remains the same. 53% of Stock & Shares ISA holders expect to invest the same amount over the current tax year (2026-27), signalling the resilience of many investors despite wider uncertainty.

For investors making changes, the research shows that the highest proportion (17%) will look to diversify their investments to manage geopolitical risk. A similar number (16%) state that they have paused or plan to pause making new investments until there is greater clarity on how the conflict will develop. Only a small proportion are planning to take money out of their investments to put into cash: 12% say they may do so to access funds in the near-term (e.g. as a result of the rising cost-of-living), whilst 10% say they may do so to reduce their risk exposure.

The findings also indicated that 34% of investors surveyed would now be more likely to invest in the defence sector, compared to 28% who stated they would place more importance on sustainability factors.

Miranda Seath, Market Insight & Fund Sectors, Director at the Investment Association, said:

“While the conflict in the Middle East has increased market uncertainty, it is encouraging that half of investors are staying the course, with no immediate plans to amend their portfolios. Importantly, there is no clear evidence of a wider trend towards investors pulling their money out of markets altogether. Rather, our research suggests that the heightened market turbulence is reinforcing the value of diversification to mitigate risk and disciplined decision-making in the months ahead.”

“Following the launch of the Invest for the Future campaign last week, and as more savers are encouraged to view investing is for them, our research is a clear sign that investors recognise the importance of a long-term approach – underpinned by clear risk communication and the confidence to take the next step when it is right for them.”