Iran War Panic: Is It Time to Buy or Sell ASX Stocks?

Geopolitical upheaval often sends shockwaves through global financial markets, and the recent escalation in the Middle East is no exception. Investors are understandably on edge, wondering whether it’s time to sell everything or seize the opportunity to buy undervalued Australian shares.

In this week’s episode of the Wealth Within Australian Stock Market Show, Chief Analyst Dale Gilham and Senior Analyst Janine Cox cut through the panic to provide clarity on how investors can navigate volatile markets with confidence.

Market Volatility or Market Opportunity?

When war breaks out, the initial market reaction often amplifies fear and uncertainty. Yet, as Dale Gilham pointed out, history shows that war doesn’t typically cause sustained market crashes. Instead, these events create short-term volatility, which are pockets of uncertainty that often present buying opportunities for disciplined investors.

“Markets don’t crash just because of war,” Dale explained. “We generally see volatility, yes, but often markets actually rise in the months that follow as investors refocus on company fundamentals and growth.”

For traders, choosing where to place focus matters more than reacting emotionally. That means following the charts and using sound rules rather than worrying about headlines or speculation.

How to Navigate a Volatile ASX

Janine Cox stressed the importance of having a structured plan for turbulent markets. “The key,” she said, “is to rely on your trading rules, not your emotions.” When uncertainty dominates, investors need to assess which sectors are stabilising, which are running, and where pullbacks may present opportunities.

For instance, resource-heavy sectors such as energy and mining often experience bursts of activity during global supply disruptions. However, patience remains critical as rushing in on news-driven spikes (like oil rallies) often leads to poor timing.

For those seeking to strengthen their skills in market analysis, starting with one of Wealth Within’s trading courses will provide the professional structure needed to trade confidently through all market cycles.

The Importance of Stock Selection Over Sector Hype

Another theme discussed was the ongoing misconception that investors must “buy the hot sector” to profit. Dale reminded viewers that disciplined traders don’t buy sectors; they buy individual stocks with strong technical setups and clear entry rules. “You don’t need to overcomplicate your portfolio,” he said. “Stick to quality stocks and use a methodical buy-and-sell process.”

That process, which is taught through Wealth Within’s government-accredited Diploma of Share Trading & Investment, ensures investors can make decisions backed by evidence, not emotion.

ASX Opportunities Amid Market Fear

In times of heightened volatility, defensive plays and strong blue-chip stocks can emerge as standout performers. During the show, several companies and ETFs in sectors like finance, defence, and resources were highlighted as exhibiting promising setups,provided investors wait for confirmation signals before entering.

“War-time volatility can actually trigger the next round of opportunities,” Janine said, citing examples from prior decades when market corrections preceded significant rallies.

Their Hot Stock Tips videos often spotlight such setups, showing how professional traders use both price and pattern analysis to identify timing windows.

Those new to the market can also explore the Stock Market for Beginners guide, a free resource explaining how to invest confidently in Australian shares.

Let’s take a look at the state of play on the ASX during this war-time volatility.

EOS (Electro Optic Systems)

The team analysed EOS, a popular defense stock that recently broke through its all-time highs before experiencing some profit-taking. Janine noted that despite short-term pullbacks, interest in the stock remains strong. Investors are urged to wait for confirmation such as a move above the $10.50 resistance level, before considering new entries.

ANZ Bank (ASX: ANZ)

As markets waver, Australia’s big banks continue to show resilience. Dale highlighted that ANZ, like other major banks, remains bullish, with consistent performance and opportunities for investors seeking medium-to-long-term holds. “Now’s not the time to panic,” Dale said. “In fact, the banks are providing stability and even value right now.”

DroneShield (ASX: DRO)

DroneShield, another defense sector stock, has captured investor attention after sharp upward movement in recent months. Janine described it as “not for the faint-hearted,” noting that with high volatility comes the need for precise entry and exit strategies. Around the $3 support level, the stock’s behaviour could set up a new rally if confirmed above $4.30–$4.40.

Eyelite Limited (ASX: ELS)

ELS has shown eye-catching momentum, rising over 1,600% in the past year. However, Dale cautioned against jumping in too soon after parabolic runs. Investors should wait for confirmation that demand and volume levels can support a sustainable upward move.

Gold & Oil Outlook

The conversation also touched on gold, silver, and oil amid global tension. Gold remains in an extended uptrend towards the $6,000 level, though Janine warned of potential consolidations along the way. In contrast, oil, represented by stocks like Woodside, shows early signs of a bullish base forming. For traders unfamiliar with futures, investing through quality energy companies can be an easier way to gain exposure during this cycle.

Commonwealth Bank (ASX: CBA)

CBA has regained strength following a volatile period in 2025. Janine emphasised that the bank’s recovery, supported by cost-cutting and AI-driven efficiency, suggests renewed upside potential. “Right now, CBA is holding strong and finding its support levels,” she explained.

ARMR (BetaShares Global Defence ETF)

Dale discussed ARMR as an example of a well-structured ETF allowing retail investors to gain exposure to the global defense sector. Having climbed 80% since late 2024, the ETF is demonstrating strong technical trends with potential upside beyond its current highs; provided confirmation occurs above $29.35.

Bank of Queensland (ASX: BOQ)

BOQ’s long stagnation has positioned it as a potential sleeper opportunity. Testing strong historical support levels, this second-tier bank may lead the next upward wave. “When there's fear in the market,” Janine noted, “that’s often when professionals are quietly positioning for growth.”

BlueScope Steel (ASX: BSL)

BlueScope, once part of BHP, continues to impress analysts with its consistent trend structure and cyclical rhythm. Having broken its 2021 highs, it’s now pulling back towards support levels around $25–$26. Dale called it one of his favourites, emphasising the power of patience in capturing sustainable returns.

Santos (ASX: STO)

Santos remains a watchlist favourite, driven by its strong positioning in the energy sector. The team advised patience as the stock consolidates below key resistance. When it eventually breaks through, traders could see a strong upward movement aligned with oil market strength.

Lessons in Market Timing and Trader Psychology

Both analysts reiterated that one of the most overlooked skills in investing is patience. Many traders lose money not because they selected poor stocks, but because they failed to wait for confirmation or got trapped by fear of missing out (FOMO).

“The most wealth is transferred from the impatient to the patient,” Dale said. Understanding when to buy, hold, or sit back is what separates professional traders from emotional investors. Such principles are at the heart of Wealth Within’s Short Course in Share Trading which are designed to help investors build a solid foundation before advancing to more sophisticated strategies.

Commodities in Focus: Gold and Oil

Gold and oil remain front of mind during global conflicts, often attracting waves of speculative buying. Janine noted that while gold has surged, much of that movement reflects emotional trading. “Euphoria tends to mark the top of the market,” she explained. “Investors need to assess whether a move has long-term potential or is just a short-lived reaction.”

Oil, meanwhile, could lead to rising inflationary pressures if supply routes remain constrained. However, Australian companies like Woodside continue to benefit from resilient global demand, making the sector one to watch in the months ahead.

Those looking to refine their commodity and technical analysis skills can take the next step with the Advanced stock trading course, which is designed for experienced traders seeking deeper insight into timing and market cycles.

Building Confidence Through Education

At the heart of every decision, the Wealth Within team advocated education as the most powerful antidote to market fear. Rather than reacting to uncertainty, educated traders read charts, understand probability, and manage risk effectively.

Wealth Within’s founder, Dale Gillham, reminds investors that studying with professionals allows you to cut through the noise and build the self-sufficiency to trade profitably. Discover more about Wealth Within and their 20+ years of helping Australian investors take control of their financial futures.

Final Thoughts: Stay Calm, Stay Strategic

When markets react to fear, the best opportunity often lies in staying disciplined. As Dale summarised, “This isn’t about guessing the next headline, it’s about following your trading plan.”

Whether you’re facing market shocks, global headlines, or routine corrections, the principles remain the same: manage risk, follow proven analysis, and maintain emotional control.

If you’re ready to learn how to trade confidently, even in uncertain times, explore Wealth Within’s expert-led programs and start your journey with Australia’s most respected share trading education provider today.