International stocks were expected to perform strongly this year, but the ongoing conflict in Iran has disrupted these expectations. Wall Street Journal (Markets) posted on X that the geopolitical tensions have shifted investor focus back to U.S. markets, which are currently outperforming their international counterparts. The instability in the Middle East has led to increased volatility in global markets, prompting investors to seek the relative safety of U.S. equities. Analysts suggest that until there is a resolution to the conflict, U.S. markets may continue to dominate due to their perceived stability and resilience. This shift highlights the impact of geopolitical events on global investment strategies and market dynamics.