BCA Research has upgraded its outlook for energy-surplus nations as the Strait of Hormuz closure reshapes global trade terms. Chief Strategist Juan Correa acknowledged that "the closure of the Strait of Hormuz, one of the key risks we had flagged to our sanguine view on risk assets, has come to fruition."

The firm has moved Canadian and Australian equities to overweight from neutral and underweight positions, respectively. This strategic shift targets countries with energy surpluses to diversify away from immediate conflict fallout. The move reflects growing confidence in resource-rich economies as global energy prices remain elevated.

In a significant tactical adjustment, tail-risk hedging strategies have been elevated to a "max overweight" recommendation. Correa explains that "our tail risk protection should continue to prove useful" as the firm targets puts with a 610 strike price. Currency allocations have also shifted, with both the Canadian dollar and Australian dollar upgraded to overweight.