RBC BlueBay’s Dowding Sees Recession Risk for Europe on Iran War

Mark Dowding, chief investment officer for fixed income at RBC BlueBay Asset Management, says markets appear to be complacent about the economic fallout from the Iran war. “It has the echoes of what we saw in the run-up to Covid actually landing on our shores,” Dowding tells Bloomberg Television.Source: Bloomberg

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By Rose Henderson and Anna Edwards

April 27, 2026 at 8:09 AM UTC

Europe faces recession if the Strait of Hormuz crisis isn’t resolved within a month, according to Mark Dowding, chief investment officer for fixed income of RBC Bluebay Asset Management.

He said the supply disruption in the energy market is worsening daily with one billion barrels of oil already lost since the conflict began. The stagflationary supply shock will continue to impact global markets differently, with Europe and Asia suffering more than the US, Dowding told Bloomberg TV on Monday.