Yie-Hsin Hung, president and CEO of State Street Investment, said the market reaction to the war with Iran has been predictable, with investors seeking safe haven assets amid geopolitical tensions. Speaking in a recent interview, Hung noted that the flight to safety aligns with historical patterns during periods of international conflict.

The conflict with Iran has rattled global markets, though the response has been relatively measured compared to previous geopolitical crises. State Street, one of the world's largest asset managers with over $4 trillion in assets under management, has been closely monitoring market movements as investors reassess risk.

Hung's assessment suggests that while volatility has increased, the market's orderly transition to defensive positions indicates investor confidence in existing risk management strategies. The flight to safe haven assets typically includes increased demand for government bonds, gold, and certain currencies during periods of heightened geopolitical uncertainty.