Investors have made a significant recovery following the Iran crisis, which has resulted in a significant increase in investor confidence. Major stock markets, Treasuries, and other bonds were sold, with gold prices dropping 4% after a four-week high. The crisis came as Israel attacked Lebanon and Iran responded with strikes against energy infrastructure in Gulf countries and tankers. Brent crude gained nearly 7%, while the U.S. dollar posted sharp gains, reaching multi-month peaks against the euro, sterling and yen. Market analysts attributed the de-risking behaviour to complacency about the conflict, extreme positioning in the weeks leading up to the attacks on Iran, and the hit to bonds from the inflationary effects higher oil would generate. However, investors reduced exposure to equities, pulling $9.6 billion from U.K.-focused equity funds, while global equity funds saw an outflow of €9.1 billion, the highest in over two months.