Market Signals:  Energy Shock and Stagflation Risk

Nick Schoenmaker  |  Portfolio Construction Forum  |  07 March 2026  |  0.25 CE

Markets spent the week attempting to price a geopolitical shock whose macro consequences remain highly uncertain.

The escalation involving Iran has pushed energy markets back to the centre of the macro narrative. Oil prices surged, shipping conditions tightened, and inflation expectations began to move again after several months of relative stability.

Analysts’ 2026 Brent and WTI price forecasts

Plot

Note: Figures are period average forecasts in dollar per barrel.
Source: Reuters monthly oil polls | Pablo Sinha

Yet the most important signal was no...

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