Norway will maintain a substantial allocation to U.S. stocks despite the economic uncertainty stemming from the Iran war, Finance Minister Jens Stoltenberg said Wednesday at the Semafor World Economy forum in Washington, DC. The country’s sovereign wealth fund, valued at about $2.1 trillion, plans to keep roughly half of its holdings in American equities, he said.
"We plan to continue to be a big investor in US companies and to have roughly half of our investments there, because the American stock market is so dynamic and reflects the strength of the US economy," Stoltenberg said, explaining the rationale for the fund’s large U.S. exposure.
At the same time, Stoltenberg acknowledged the conflict in the Middle East presents risks to the global economy. He said the consequences of the Iran war - including higher energy prices - are worrying because they have the potential to increase inflation and reduce economic growth.
"But it makes us of course concerned when we see the consequences of the war in the Middle East, with increased energy prices that can increase inflation and push down growth," Stoltenberg said.
Stoltenberg, who served previously as NATO secretary-general, addressed alliance dynamics as well. He said he did not expect tensions around the US-Israeli war on Iran to lead the United States to exit the Atlantic alliance, despite public threats by President Donald Trump on several occasions.
Reflecting on NATO’s condition, he said the alliance faces significant problems and challenges but noted that disagreements have been overcome in the past. "We have been able to overcome disagreements before, and I really hope and believe that we can do that again," he added.
Stoltenberg also criticized the United States for not consulting allies before launching the military action against Iran. He said: "He’s not wrong in saying that NATO has not contributed actively to that military operation. But if you want NATO to contribute then at least you have to sit down with NATO allies as you did after 9/11," referring to NATO’s involvement following the 2001 attacks.
His remarks offered a mix of reaffirmation of Norway’s investment strategy and an explicit warning about geopolitical risks that could influence energy markets, inflation trajectories, and global growth.