How should an ordinary person think about investing around a possible US/Israel-Iran escalation?

I'm not asking this from a political or moral angle, but from a practical one.

As ordinary citizens, we obviously have no influence over what the US, Israel, or Iran decide to do. But history shows that geopolitical conflicts often lead to somewhat predictable market effects: oil and gas volatility, shipping disruptions, defense spending, inflation pressure, moves in gold, and changes in risk sentiment.

So my question is: how should a normal retail investor think about positioning around this kind of conflict?

Not looking for “get rich quick” fantasies. I’m more interested in how experienced investors or people working in banking, macro, energy, or risk management think about it.

What asset classes or sectors usually react first?

What are the most obvious second-order effects people underestimate?

How do big institutions typically look at this kind of situation?

Is there a smart way to hedge, rather than just gamble on headlines?

Curious how people here would approach it in a rational way.