Public Markets 3 Days

Last updated: May 19, 2026, 5:30 AM ET

Energy Markets Confront Headwinds Amid Middle East Tensions

Oil prices retreated toward $110 a barrel as Middle East tensions persisted, while the UK's energy price cap is set to jump 13% this summer—the largest gain since 2023—according to analysts. India's state-run refiners raised fuel prices for the second time in less than a week as the Iran conflict drove crude costs higher, squeezing margins for Asian consumers. Australia has secured additional commodity supplies including jet fuel from China and urea from Brunei, highlighting supply chain strain, while Ryanair warned European airlines face casualties if jet fuel costs remain elevated. Lufthansa is speaking with investors ahead of a potential euro bond sale as the industry grapples with rising fuel costs, and Vietnam's largest refinery confirmed stable operations through June despite supply diversification efforts.

Bond Markets Navigate Inflation Anxiety

Global bond markets showed signs of stabilization even as inflation fears persisted, with Japanese government bonds leading declines amid rising oil prices that stoke consumer-price shocks. U.S. Treasury yields edged toward 2007 highs, testing investor resolve between locking in elevated rates and risking further increases, while a deepening slump in JGBs added fuel to the selloff globally. Three of Asia's most vulnerable economies are showing rising strains as central banks face pressure to tighten policy even as the economic hit from the Iran-war oil shock deepens, and rising public debt adds pressure across markets with increased hedge fund trading opening new fragilities. Double Line's Jeffrey Gundlach asserted Fed rate cuts are "just not possible", signaling continued pressure on bond yields.

Equities Display Resilience Amid Geopolitical Uncertainty

Stock markets paused amid cautious investor sentiment as the S&P 500 ended a choppy session near unchanged, with Singapore stocks climbing to record highs as investors sought defensive havens during Iran war volatility. Supercharged gains in a handful of Korean stocks are stoking concerns that the world's hottest market is overheating, while high-flying stocks have defied bond gloom despite investor anxiety over economic fallout from the Iran conflict. Trump's trading accounts showed more than 3,700 trades in the first quarter, highlighting continued market activity despite political uncertainty, and Wall Street indices have surged to record highs even as anxiety persists over Middle