# What Are Other Funds Doing?

Date: 2026-03-02

**Note:** Palace Fund does not invest in defense, weapons, or any securities that fund
war. This research is conducted to understand how geopolitical events impact financial
markets at large — not to identify war-related investment opportunities.

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On February 28, the US and Israel launched Operation Epic Fury against Iran. Supreme
Leader Khamenei was killed. Iran retaliated with missiles across six countries. The
Strait of Hormuz — carrying 20% of global oil — is effectively shut down.

This is the most significant geopolitical market shock since 2022. Every asset class is
moving. This wiki breaks down what is happening, why, and what to watch.

## Start Here

- [[2026-03-02-check-other-funds/timeline]] — Hour-by-hour: what happened and when markets moved
- [[2026-03-02-check-other-funds/oil-and-hormuz]] — The oil shock and Strait of Hormuz closure
- [[2026-03-02-check-other-funds/gold-and-safe-havens]] — Gold, Treasuries, currencies, and the flight to safety
- [[2026-03-02-check-other-funds/equities]] — Stocks, sectors, and what's getting hit
- [[2026-03-02-check-other-funds/fed-and-rates]] — The Fed's dilemma: inflation vs. growth
- [[2026-03-02-check-other-funds/who-to-watch]] — JP Morgan, Goldman, Bridgewater, Buffett, and others

## The Big Picture (as of March 2)

Three things will determine what happens next:

1. **Hormuz duration** — If it reopens in days, markets recover. If weeks, we enter a
   new regime. See [[2026-03-02-check-other-funds/oil-and-hormuz]].
2. **Fed response** — Oil-driven inflation vs. growth support. They can't do both.
   See [[2026-03-02-check-other-funds/fed-and-rates]].
3. **Conflict escalation** — Contained strikes vs. prolonged war. Trump says "four weeks
   or less." Iran is hitting six countries. See [[2026-03-02-check-other-funds/timeline]].

## Wall Street Consensus

Haven-first: [[2026-03-02-check-other-funds/gold-and-safe-havens|gold]], Treasuries, Swiss franc. Underweight
[[2026-03-02-check-other-funds/equities]]. Duration of [[2026-03-02-check-other-funds/oil-and-hormuz|energy shock]] is the key variable.