From the Desk

Market insights from our investment teams

Week of  May 25, 2026

Dec Mullarkey

Managing Director, Investment Strategy and Asset Allocation
LinkedIn

Markets expect the U.S. and Iran to reach a détente before the worst sets in. Certainly, equities are not expecting a growth setback. Bond investors appear to think high inflation will linger. Even if shipments from the region were to start soon, restoring full supply will take time.

For instance, there is no queue of ships waiting to enter the region. They are off on other assignments and will take time to get back. And they may stall to ensure any peace agreement is holding up before they make the journey. Damage to Gulf-Region infrastructure will need repair and rebooting shuttered wells takes time – and we believe some may never recover.

Outside the Gulf Region, other countries will need to rebuild inventories. That means upping their orders in a rush to get stocked up. Against this backdrop of still subpar supply yet very motivated buyers, energy inflation is likely to remain high.

While politicians say prices should quickly return to normal, most central bankers expect something more arduous. While new U.S. Federal Reserve Governor Kevin Warsh seems to want to cut rates, he is already hearing that his own members are not on board. Many think it will take time to get pesky inflation under control.   

Sources: Bloomberg, The Financial Times, 2026.

The information may include statements which reflect expectations or forecasts of future events. Such forward-looking statements are speculative in nature and may be subject to risks, uncertainties and assumptions and actual results which could differ significantly from the statements. All opinions and commentary are subject to change without notice. SLC Management is not affiliated with, nor endorsing, any third parties mentioned within this article.

Market insights are based on individual author opinions and market observations. SLC Management investment teams may hold different views and/or make different investment decisions. These are observations only and are not intended to provide specific financial, tax, investment, insurance, legal or accounting advice and should not be relied upon and does not constitute a specific offer to buy and/or sell securities, insurance or investment services. Investors should consult with their professional advisors before acting upon any information posted here. 

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