JPMorgan has identified sector winners and losers as Middle East tensions drive market volatility. Global equities sold off sharply with European indices falling over 3% and Asian markets tumbling, while U.S. futures dropped 1.8%. Energy prices climbed as investors assessed geopolitical risks.

On the winning side, JPMorgan highlighted defense primes benefiting from missile defense deployments and drone warfare adoption. North American energy companies including E&Ps, refiners, and LNG providers are positioned to capture supply gaps as buyers seek alternatives. Cybersecurity names gained favor for critical infrastructure protection amid elevated threat environments, while tanker rates could spike on rerouted trade flows.

Consumer discretionary and global brands face pressure from inflation expectations and Asia supply chain risks. Cruise lines are exposed to fuel costs and port disruptions, while airlines confront fuel cost surges and route suspensions. Travel companies and online travel agencies appear vulnerable to discretionary demand pullbacks and regional booking collapses as the conflict threatens to disrupt both energy markets and global trade patterns.