A tough macro backdrop gets tougher. Will equities care?

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A day after Brent crude surged above $120 per barrel, Group Chief Economist Neil Shearing and Deputy Chief Emerging Markets Economist Jason Tuvey discuss how long the conflict in the Middle East could continue and why Iran’s collapsing economy is not a reliable guide to when the regime might capitulate.Speaking with David Wilder, they also explore how central bankers are navigating the inflation risks posed by a prolonged disruption to energy supply, as well as what the UAE’s departure from OPEC could mean for oil markets and what it signals in a world of intensifying US–China competition.And in a packed week for equities investors, Chief Markets Economist Jonas Goltermann assesses how key Big Tech earnings reports have landed and explains why bonds have not been performing nearly as well as equities.Related contentRead: How long can Iran hold out?https://www.capitaleconomics.com/publications/middle-east-north-africa-economics-update/how-long-can-iran-hold-outRead: Forecasting through the fog of warhttps://www.capitaleconomics.com/publications/global-economic-outlook/forecasting-through-fog-war-1