Investors Flock to Commodity ETFs as Iran War Fuels Energy Inflation

Investors are pouring money into commodities funds as the US-Iran war stokes inflation, according to Invesco Ltd.

Traders last week added almost $86 million to the Invesco DB Commodity Index Tracking Fund — a cross-commodities exchange-traded fund with a heavy weighting toward energy — in the largest daily inflow since 2022, according to data compiled by Bloomberg. The move is part of a broader surge into commodity-linked products over the past week, echoing the wave of inflows that followed Russia’s invasion of Ukraine four years ago and the ensuing spike in oil and natural gas prices.



Investor demand for commodities exposure is rising after last week’s US inflation data showed mounting price pressures tied to the Iran war. With the conflict now in its 12th week and energy shipments through the Persian Gulf still disrupted as the Strait of Hormuz remains effectively blocked, higher oil costs are rippling through supply chains and pushing up prices for everyday goods.