State Street’s CEO warns of a global fertilizer crisis due to the Iran war: ‘I personally worry about what happens if this goes on much longer’

In today’s CEO Daily: Ron O’Hanley talks the Iran war, AI, and how global investment opportunities are changing

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The markets: Global markets pull back slightly even as S&P 500 futures tick upwards

Plus: All the news and watercooler chat from Fortune.

Good morning. If you want to understand where global capital is flowing—and why—listen to Ron O’Hanley. As chairman and CEO of State Street, he leads a global financial institution that safeguards and services more than $54 trillion in client assets and manages $5.6 trillion through its investment management business. I caught up with O’Hanley at the Milken Institute Global Conference this week to get his take on issues weighing on investors:

The Iran war: O’Hanley says the war is triggering a realignment of capital flows, especially with the $3.2 trillion that the Gulf states and sovereign wealth funds have deployed. “They’re ripping angry at [Iran] and they’re quite concerned about the rhetoric coming out of the U.S. because the only thing worse than the situation now would be a failed state with 90-plus million people. We haven’t seen anything like it elsewhere in the world,” he told me. “I personally worry about what happens if this goes on much longer. It’s the second-order products that don’t get the headlines…Fertilizer is a big one. The people I talk to on this, their fingers crossed, feel like the world will get through this year because a lot of the fertilizer was already in the supply chain.........

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