Ultra-high-net-worth families are reallocating up to 15-20% of their portfolios as the Iran conflict unsettles energy markets and speeds up a wider realignment of the global economy, according to wealth managers.
deVere is seeing a sharp rise in activity within our Family Office division, as clients look to restructure portfolios, jurisdictions, and governance frameworks in response to both near-term market stress and longer-term geopolitical fragmentation.
Demand for Family Office structures is also increasing globally, as investors pursue more complex cross-border adjustments.
The International Energy Agency has described the disruption as the largest oil supply shock in modern history, highlighting the scale of the impact.
Wealthy investors reposition as global risks intensify
Meanwhile, a broader reshaping of the global economy is underway, with globalisation increasingly fragmenting into regional trade blocs as the US, China, and their aligned economies operate in more parallel systems.
Global supply chains are being reshaped through near-shoring and friend-shoring strategies, with a growing emphasis on security and resilience over cost efficiency.
Industrial policy is also accelerating, as governments channel investment into strategic sectors such as energy, defence, semiconductors, and artificial intelligence.
At the same time, sanctions are expanding, capital controls are tightening in some regions, and cross-border investment is increasingly subject to political conditions.
High levels of sovereign debt are constraining governments’ fiscal flexibility, while currency markets are becoming increasingly sensitive to geopolitical alignment, including rising debate over the long-term dominance of the US dollar.
Iran conflict accelerates energy shock and inflation risks
This reflects a systemic shock, with a major disruption to energy supply occurring alongside a broader structural shift toward global fragmentation.
Ultra-high-net-worth families are increasingly considering reallocating double-digit portions of their portfolios, as they anticipate a world splitting into competing economic blocs and parallel financial systems.
Demand for defensive positioning has risen sharply, with deVere Group’s Family Office reporting a notable increase in planned allocations to energy, commodities, and inflation-protected assets, alongside a surge in currency hedging activity.
Hedging demand, in particular, has accelerated rapidly over just a matter of weeks.
Clients are increasingly seeking to reduce exposure to currencies vulnerable to energy import shocks and geopolitical risks, with a growing emphasis on protecting real wealth in an environment where inflation and volatility are expected to remain elevated.
The breadth and complexity of this repositioning is also boosting demand for Family Office services, especially among investors with multi-jurisdictional holdings and cross-border exposure.
Clients are going beyond simple asset reallocation, instead reshaping how their wealth is structured, where it is domiciled, and how investment decisions are governed.
Structural fragmentation reshapes global investment strategy
This requires coordinated oversight across multiple jurisdictions, tax regimes, and investment strategies, particularly as capital flows become more politicised and regulatory scrutiny intensifies.
deVere Group reports a rising pipeline of restructuring activity, including changes to trusts, adjustments to holding company structures, and broader jurisdictional rebalancing.
Timelines are tightening, with strategies that once unfolded over several years now being planned and implemented in phased steps over just a few months. Clients are moving pre-emptively in anticipation of further fragmentation in trade, capital flows, and regulation.
The shift reflects a dual dynamic. An immediate energy shock combined with a deeper structural transformation in the global economic system.
Disruptions to oil supply are amplifying inflationary pressures and dampening growth expectations, while an increasingly fragmented global system, shaped by competing trade blocs, tighter capital flows, strategic resource rivalry, and expanded state-led industrial policy, is reshaping how capital is allocated and moves across borders.
Diversification itself is being redefined, shifting from a focus on traditional market exposure to understanding how assets perform across different political and economic regimes.
Capital shifts toward resilience, control, and strategic assets
Family offices are playing a central role in this shift, enabling clients to fine-tune exposure across multiple economic and political systems with greater precision.
Capital is increasingly flowing toward jurisdictions that offer legal certainty, liquidity, and political stability, while investors maintain multi-jurisdictional structures to preserve flexibility and access across emerging economic blocs.
At the same time, investment priorities are tilting toward sectors expected to benefit from ongoing structural transformation.
Energy infrastructure, logistics, and supply chain assets are drawing sustained investor interest, alongside AI and technology platforms that enable regional production and automation.
Furthermore, demand for private credit in these areas is also rising as traditional financing conditions tighten.
Capital is increasingly concentrating around key pressure points in the global economy. Energy, logistics, supply chains, and strategic technologies are emerging as the core areas where the international system is being reshaped and rebuilt.
The shift is also accelerating succession and governance planning, with families bringing forward key decisions to ensure wealth is preserved and smoothly transferred across generations.
Generational planning is being advanced at a faster pace than before, as wealth structures are reinforced to ensure assets can be moved, adapted, and sustained regardless of how geopolitical conditions evolve.
Our mission is to protect and grow each client’s legacy with integrity, transparency, and dedicated care, ensuring it can be sustained across generations.
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