Cazenove Capital downgrades equity view to neutral amid Iran conflict
Updated
Updated · Royal Gazette · May 6
Cazenove Capital downgrades equity view to neutral amid Iran conflict
11 articles · Updated · Royal Gazette · May 6
In its May 2026 outlook, chief investment officer Caspar Rock said investors now face possible rate hikes, not the cuts expected earlier this year.
The Schroders wealth manager kept an underweight stance on fixed income, raised cash and alternatives including gold, and warned expensive equities may not yet reflect higher energy costs.
It said first-quarter Middle East escalation drove a sell-off in global stocks and bonds, while resilient US consumers supported growth and current data did not show AI destroying jobs.
Beyond traditional assets, which investments can truly thrive amid persistent inflation and geopolitical shocks?
With US consumer health weakening, is the American economy truly insulated from the global energy crisis?
Is the pivot to gold and infrastructure a temporary fear trade or a permanent de-risking of the global financial system?
Iran Conflict and the 572 Million Barrel Reserve Release: Unraveling the 2026 Energy Crisis
Overview
In early 2026, US-Israeli strikes killed Iran's Supreme Leader, prompting Iran to retaliate by attacking Gulf energy facilities. This escalated conflict blocked the Strait of Hormuz, a vital route for 20% of the world's oil and LNG exports, causing a sharp surge in global energy prices and triggering inflation and stagflation risks worldwide. The crisis disrupted European natural gas supplies and led to widespread flight cancellations due to jet fuel shortages. In response, the IEA and US released historic strategic reserves, yet oil prices remained high, exposing vulnerabilities in energy security. The turmoil accelerated a global shift toward renewable energy and highlighted new risks in critical mineral supply chains, reshaping economic and investment landscapes.