---
title: "Iran Situation | Citigroup states that the current situation is like the tanker war of the 1980s and calls for prioritizing the allocation of large American tech companies"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279189608.md"
description: "Citi pointed out that the current situation in Iran is similar to the tanker wars of the 1980s, which may impact global energy shipping routes. Despite facing geopolitical conflicts and energy shocks, the stock market may show resilience. Citi recommends that investors prioritize allocations to large-cap tech stocks, adjust their holdings structure, lower investment ratings on small-cap stocks, and suggests increasing positions after market volatility subsides"
datetime: "2026-03-16T02:10:21.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/279189608.md)
  - [en](https://longbridge.com/en/news/279189608.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279189608.md)
---

# Iran Situation | Citigroup states that the current situation is like the tanker war of the 1980s and calls for prioritizing the allocation of large American tech companies

After the United States and Israel jointly attacked Iran, the Iranian Revolutionary Guard declared its intention to block the Strait of Hormuz, a major global energy shipping route, prompting the route to nearly come to a standstill. Citigroup believes that the current market environment is more akin to the "Tanker War" during the Iran-Iraq War in the 1980s than the oil crisis of the 1970s. At that time, Iran and Iraq attacked each other's tankers and those of third-party contractors in the Persian Gulf, leading to a nearly 20% drop in tanker traffic through the Strait of Hormuz, ultimately forcing the U.S. Navy to launch escort operations.

In terms of market performance, oil prices peaked in July 1987 after an incident involving a U.S. vessel hitting a mine, but the overall performance of the U.S. stock market did not collapse. Even though there was a "Black Monday" stock market crash in October 1987, the S&P 500 index maintained an upward trend throughout the conflict. Citigroup believes that even in an extreme environment where geopolitical conflicts and energy shocks occur simultaneously, the stock market may still exhibit some resilience, which is more relevant to the current market.

In terms of investment advice, Citigroup pointed out that global investors have recently made significant adjustments to their stock holdings, moving away from diversified sector trading and refocusing funds on defensive assets such as large tech stocks, while reducing positions in smaller stocks that are more sensitive to economic cycles.

Citigroup maintains an "overweight" rating on U.S. stocks but has downgraded its view on U.S. small-cap stocks from "overweight" to "neutral," recommending that investors prioritize allocations to large tech stocks. However, due to ongoing market volatility, it is advised to wait for a reduction in volatility before increasing positions

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