The conditional two-week U.S.-Iran cease-fire should stabilize near-term market
sentiment, says Anthony Kettle, managing director at RBC BlueBay Asset
Management. He expects temporarily lower oil prices should ease inflationary
pressures in vulnerable Asian economies and improve fiscal dynamics for
importers. However, Kettle recommends avoiding structural bets until the
cease-fire proves durable, and cautions that Middle Eastern energy exports will
take time to normalize even if peace holds. Expecting energy prices to remain
meaningfully elevated this year, RBC BlueBay advises investors to target
sovereigns and corporations that are resilient to or benefit from higher energy
costs.
