What turbulent times mean for your super

Superannuation is driven by global investment markets. We're only a few months in to 2026, but markets have already had a big year with the breakout of a new conflict in the Middle East.  

The situation in the Middle East has escalated quickly following the US-Israel military strikes on Iran. The conflict is disrupting one of the world’s most critical trade routes – the Strait of Hormuz, which carries energy and other critical exports towards the Asia-Pacific region – economies closely tied to Australia’s. 

When that flow is disrupted, the impact travels fast. So far, the most visible impact for Australians has been a steep price rise at the petrol pump. But it doesn’t stop there.  

As geopolitical conflict ripples through economies, you might see headlines about falling share markets or ‘volatility’ flashing across your feed.  

Take a breath. This is what long-term investing is built for. 

Super is a decades-long investment. It’s designed to move through different market cycles – the calm ones and the chaotic ones. Short-term market swings can feel unsettling, but they’re a normal part of how investing works. 

At Verve Super, your money is invested in a diversified portfolios designed to manage risk over the long term – across different asset classes, sectors and regions. (With the notable exception being Gender Equity Australian Shares, which is 100% invested in Australian shares.) That diversification is designed to help cushion the impact when one part of the market is under pressure. 

We’ve seen this stuff before. Global financial crises. A pandemic. Inflation spikes. Markets fall. Markets recover. Long-term investors who stay the course are typically rewarded for their patience. 

And you’re a long-term investor in this scenario. Your super isn’t invested for this week or this month. It’s invested for your future. 

The conflict in Iran has threatened to shrink the global oil supply, which sparked falls across financial markets. Liquid Natural Gas (used as fuel and in fertilisers) and helium (used in computer chips) are also being affected. 

But if Verve Super isn’t invested in fossil fuels, why would it still impacted by oil? 

It’s a fair question. 

Verve Super does not invest in fossil fuel companies. Full stop. Weapons, gambling and tobacco companies are also screened out. We believe your retirement savings shouldn’t profit from industries that we believe harm people or planet. 

But oil and gas still power a huge part of the global economy.  

Transport, shipping, aviation, manufacturing and agriculture still rely heavily on oil – and if the Strait remains disrupted for an extended period, global supply chains could be threatened. This highlights the severe political and economic risks that reliance on fossil fuels entails. We think that accepting such risks isn’t compatible with a prosperous future.  

When conflict disrupts supply and oil prices spike, it pushes up costs across the economy. Businesses must pay more to produce and transport goods – costs they pass on to consumers. That can squeeze company profits and slow consumer spending, raising inflation and if viewed as persistent, making interests rates more likely to rise. 

So when oil prices jump sharply and/or supply is curtailed, the effects ripple across global markets as consumers and investors respond to these new scenarios. That’s why you might see broader market volatility linked to oil news – even in a super fund that steers clear of fossil fuel investment. 

Over time, a faster shift to renewables and electrification would increase energy security which would likely reduce these risks. The global energy mix is changing, but oil and gas still account for more than half of global energy use, with renewables making up a much smaller share. Until clean energy becomes the dominant source worldwide, geopolitical tensions in oil-producing regions can still influence markets. 

That reality doesn’t change our conviction. If anything, it reinforces it. Investing in the transition to a low-carbon economy is part of building a future that’s more stable, more sustainable and less exposed to these shocks. 

The conflict is just one piece of a larger puzzle, encompassing global markets shifting following the new US trade tariffs pushing more trade towards Europe, and the AI boom entering a new phase. Our job is to manage your super with discipline and a long-term lens – especially when markets are noisy. 

That means: 

• Staying diversified 

• Continuously monitoring risk 

• Avoiding knee-jerk reactions to news headlines 

• Investing in assets aligned with a fairer, more sustainable future 

We can’t control geopolitics. But we can control how we respond. And our approach is steady, considered and built for the long haul. 

If you’re feeling uneasy, that’s human. If you’re thinking about making changes based on headlines alone, pause. Super works best when it’s given time to do its thing, and you’ve got years of compounding on your side. 

Our investment approach isn’t built around one region, one political outcome or one short-term headline. Instead, our investment managers focus on: 

Your super is invested across different asset classes, industries and regions. This helps reduce reliance on any single market. (Keep in mind Verve Super’s Gender Equity Australian Shares is not a diversified option alone, it’s all invested in Australian shares.) 

Economic conditions are actively monitored by the investment team, alongside market trends and global developments. When conditions shift, exposures are reviewed and adjusted where appropriate. 

Super is a long-term investment, and the investment management strategy reflects that, with members best financial interests always the priority.  

Because markets are globally connected, some ups and downs are inevitable. What matters most is how portfolios are structured to absorb and manage those shocks over time. 

We’re here to help however we can. Please reach out to us if you have specific questions or concerns - our coaching team is here to help you review your investment options and make the most of your super.