With missiles Trump diverts capital flows to the US
The US dollar is once again considered a safe haven, directing European flows back to the star-studded financial markets
In the space of a week, the world has turned upside down, also from the point of view of financial dynamics. With the joint US-Israeli attack on Iran, the loser is primarily Europe, at the very moment when the Old Continent was attracting huge flows of capital fleeing from the United States.
With a prolonged closure of the Strait of Hormuz, Europe would face an energy shock that households and businesses already feel after one week of conflict. While the US, thanks to shale oil, is more self-sufficient.
The missiles fired on Iran thus allowed Donald Trump to reverse capital routes in a few hours, drawing them back to their homeland. The US dollar has once again become a safe haven, directing European flows back to the stars and stripes financial markets. Until last Saturday it was a different story. Perfect timing or just a mere coincidence?
Historically, the US has attracted capital from Europe due to economic growth tending to outpace that of Europe. This trend weakened during 2025 and reversed in early 2026.
After years of increasing concentration of flows towards US markets, the latest data showed that this inclination was coming to an end: for every 100 dollars invested in global equity funds, until last week only 26 dollars went to US equities. The rest was invested in other international listings: from Europe to Asia, not neglecting the emerging countries.
