BRIEF-S&P Expects Middle East War Escalation To Have Long-Lasting Effects On U.S. Economy & Credit Conditions

BY Reuters | ECONOMIC | 03/13/26 02:01 PM EDT

March 13 (Reuters) - S&P:

* S&P: ESCALATION OF MIDDLE EAST WAR COULD HAVE LONG-LASTING EFFECTS ON U.S. ECONOMY & CREDIT CONDITIONS

* S&P: NEGATIVE SUPPLY SHOCK FROM MIDDLE EAST WAR WILL LOWER U.S. GDP GROWTH AND RAISE INFLATION

* S&P: EXPECT U.S. OIL & GAS PRODUCERS WILL BENEFIT FROM ELEVATED OIL PRICES DUE TO MIDDLE EAST WAR

* S&P: DON'T EXPECT MIDDLE EAST WAR TO MATERIALLY AFFECT U.S. BANKS

* S&P: SUSTAINED DISRUPTIONS TO SHIPPING CORRIDORS DUE TO MIDDLE EAST WAR WOULD INCREASINGLY SPILL OVER TO U.S.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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