Iran War News Floods Markets: Traders Use AI Tools to Sort Through Investment Ideas

Special Topic: External Shocks Do Not Change Market Stability; China’s Asset Long-Term Upward Trend Remains Steady

During the first few days of the Iran war outbreak, Maxence Visseau, founder of investment firm Arkevium, was trying to interpret what this conflict meant for the markets. He placed artificial intelligence (AI) at the core of his investment process.

Large language models helped Visseau cut research time by about 80%. He used Anthropic’s Claude to stress-test multiple scenarios, compare historical precedents, and analyze potential chain reactions across asset classes.

“I almost didn’t sleep for 48 hours straight, monitoring UAE missile interceptions while running through various scenarios and preparing for market open,” said Visseau, who is based in Dubai and focuses on macro trading strategies. “It’s in moments like these that AI becomes indispensable.”

Visseau noted that while AI cannot fully replace human judgment, its time-saving advantages are increasingly important for navigating highly volatile markets. The Iran conflict disrupted energy supplies and resulted in at least 4,000 deaths. Interviews with global investors and strategists indicate that this conflict has led to greater use of AI tools in workflows, despite some pointing out flaws such as unclear prompts and inaccurate results.

“We are witnessing history — this is the first major conflict where AI is used in combat, and traders are relying on AI in unprecedented ways to simulate war scenarios,” said Nick Twidale, Chief Market Analyst at AT Global Markets with 25 years of trading experience.

One advantage of AI tools like OpenAI’s ChatGPT, Google Gemini, and China’s DeepSeek is significantly improving time management efficiency.

Jian Shi Cortesi, a fund manager at GAM Investment Management based in Zurich, said that previously it might have taken half an hour to read various news sources to get the latest updates, but now she can get key information within seconds. Gathering data on specific companies now takes a day or less, compared to several days before.

“It’s like going from shovels to giant excavators,” Cortesi said. “Speed has increased fivefold.”

Another benefit is AI’s near-instant ability to mine historical data, providing insights and context for potential future scenarios, especially during intense market swings. On Thursday, Brent crude oil prices surged 11%, breaking above $119 per barrel, then stabilized around $109, amid fears of retaliatory attacks on key Middle Eastern energy facilities.

Deep Dive

Anna Wu, cross-asset strategist at Van Eck Associates Corp. based in Sydney, used ChatGPT and Claude to review the past 100 years, tracking every oil price spike triggered by war, and identifying the best-performing asset classes during each surge. To enhance practical relevance, she also had AI cross-reference these results with other data points like median inflation and global economic growth rates.

Wu said this approach has indeed increased efficiency; many historical analyses now save a lot of time compared to previous Google searches.

For Gustavo Pessoa, AI tools can instantly provide previously hard-to-access information, making it increasingly important to assess impacts like the potential closure of the Strait of Hormuz.

“We use it for everything — from understanding vessel types to analyzing oil demand elasticity and even estimating how many barrels are needed to maintain flow,” said Pessoa, founding partner of São Paulo-based hedge fund Legacy Capital Gestora de Recursos Ltda.

AI is not perfect and cannot replace human experience and judgment. The technology has made mistakes in many areas, such as game development and news content. A Bank of England policymaker warned that AI’s application in trading could exacerbate market shocks and herding effects.

Visseau from Arkevium emphasized the need for continuous verification of AI-generated answers.

“It’s an iterative process — I question the outputs, refine assumptions, and introduce new data points,” he said.