UBS CEO Sergio Ermotti warned that financial markets are at risk of being overly optimistic about the Iran conflict. He said, "The market not only expects the situation to resolve, but also believes its impact will be resolved in a traditional manner." Despite the Iran conflict continuing to escalate with no signs of a sustainable solution, the US stock market has risen to an all-time high. CEO Ermotti emphasized, "The market is quite optimistic, and I truly hope it turns out that way," adding that potential reversal risks can be hedged through diversified asset allocation. Meanwhile, he also commented on the new capital regulation system under deliberation by the Swiss Parliament, refuting claims that UBS is aggressively lobbying for deregulation. He stated, "We are not lobbying aggressively; we are simply representing the interests of our shareholders."
