Markets

Analysts warn that soaring oil prices could force foreign investors to dump US assets.

2026-03-20 15:44:12

Wellington Warns: Strong Dollar + High Oil Could Force Foreigners to Dump U.S. Stocks and Bonds

The math is brutal. Wellington's Brij Khurana breaks it down: U.S.-Israel strikes on Iran have pushed oil higher and hammered most currencies against the dollar. That means countries and companies abroad now face a painful choice—pay more for oil or sell their U.S. assets to raise cash. So far, no forced liquidation. But if oil stays elevated, major importers like Japan and South Korea could start trimming their U.S. stock and bond holdings to cover energy costs. With foreign ownership of U.S. markets at record levels, this is a risk that bears watching.

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