UBS CEO warns: Energy prices expected to remain high, Middle East conflict may inject "inflation pressure" into supply chains.

Sergio Ermotti, CEO of UBS Group, said that as investors gradually digest the impact of the Middle East conflict on the global economy, energy prices may continue to remain high. He pointed out in an interview that energy prices may remain high for the foreseeable future, thus creating some inflationary pressure on supply chains. Affected by the deadline set by US President Trump to reopen crucial waterways for Iran, which are essential for global energy transport, the market showed risk aversion on Monday, with both stocks and US bonds falling. Brent crude oil prices have risen by over 80% so far this year, trading around $112 per barrel. Ermotti said that although it may take some time for the overall impact of geopolitical conflicts to be digested, his clients have not made significant adjustments to their asset allocations in response. He stated that, overall, client sentiment remains stable and significant shifts in asset allocation have not been observed, but the pressures facing the economy will gradually become evident in the market. He added that investors are still evaluating how long it will take to digest the impact of this crisis. Ermotti said that earlier this year, clients have been seen diversifying their investment portfolios, with adjustments showing greater diversity, such as shifting from a focus on artificial intelligence technology to more diversified allocations. Considering the market performance in recent weeks, this strategy adjustment has been a wise move. Ermotti also revealed that UBS has provided support for employees who need to relocate with their families for personal or security reasons. He added that through emergency planning at existing bases or with the support of colleagues in Europe and other regions, the bank's business operations remain manageable. He said that while the bank does not operate on a "stop-and-go" basis, during the current crisis, there may be a temporary pause in some investments at a tactical level.