BlackRock maintains a underweight position on U.S. long-term government bonds, citing the possibility that Middle East airstrikes could trigger a prolonged energy supply shock lasting several weeks, thereby posing inflation risks. Although the conflict has dealt a heavy blow to stock markets in energy-importing regions and pushed up U.S. Treasury yields, BlackRock believes the situation is likely to come under control. The firm is more optimistic about the U.S. and Japanese stock markets, especially favoring the Japanese market due to its strong economic growth and ongoing governance reforms.