Market Update 05/2026 | Chokepoint Crisis: Iran Conflict Disrupts Global Energy Markets
Iran De-Escalation Lifts Markets to New Highs; Energy Volatility Persists, Gold and Selective Equities Remain Attractive
In May 2026, T&T International maintains an Attractive stance on US, Swiss and select European equities, supported by signs of US-Iran de-escalation, robust earnings, easing tariff headwinds and expected Fed rate cuts. Markets have looked past the Strait of Hormuz disruption and refocused on strong fundamentals, although energy prices remain above pre-conflict levels and macro uncertainty lingers.
In fixed income, High Grade and Investment Grade bonds remain preferred, while EM and High Yield stay Neutral. In commodities, Gold and Copper are Attractive; in FX, AUD and EUR move higher in conviction while USD, CHF, CAD and NOK are Neutral. The CHF is expected to underperform as risk appetite returns.
The Topic of the Month — Chokepoint Crisis — examines what the Iran conflict means for global energy markets: how the Strait of Hormuz, carrying roughly one-fifth of the world's oil and the majority of LNG flows, became the systemic pressure point of the conflict, and why the focus is shifting from energy independence to long-term stability of global energy markets.
