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Renewed Middle East tensions lift energy prices; Palantir tops forecasts
Escalating tensions in the Middle East have driven energy prices to levels not seen since 2022, as instability in the Strait of Hormuz threatens global supply chains. Concurrently, Palantir Technologies exceeded its Q1 2026 earnings forecasts, reporting significant triple-digit profit growth.
Brent crude rose to $114.44 per barrel as heightened friction between the United States and Iran in the Strait of Hormuz inflated the geopolitical risk premium.
Palantir’s Q1 2026 results shattered consensus estimates, with revenue reaching $1.63 billion and earnings per share (EPS) of $0.33, marking a 153% year-on-year increase in earnings.
The Q1 2026 earnings season continues to gain momentum, with upcoming reports from AMD, Disney, and Uber keeping equity markets in a state of high anticipation.
Crucial US economic data, including Non-Farm Payrolls and the Unemployment Rate, are due for release this week and will provide vital context for the Federal Reserve’s impending policy decisions.
Energy prices surge amid geopolitical volatility in the Strait of Hormuz
Global energy benchmarks appreciated sharply at the market close following renewed hostilities between the United States, Israel, and Iran. The Brent futures contract (BRNN6) climbed to $114.44 per barrel, its highest valuation since June 2022. Similarly, the West Texas Intermediate (WTI) futures contract (CLM6) advanced by 4.43% to settle at $106.40 per barrel. Gasoline futures (RBM6) also tracked higher, rising by 3.80% to $3.73 per gallon, mirroring the 2022 peak.
According to Reuters, Iran has intensified offensive operations against United Arab Emirates territory and maritime vessels within the Strait of Hormuz. Concurrently, the US President Donald Trump has threatened military intervention to safeguard maritime traffic . As a consequence, the US-Israel-Iran standoff has reached its most significant escalation in recent weeks, stoking fears that the friction could evolve into a broader regional conflict or a prolonged stalemate.
Additionally, a Reuters’ report signals that the United States and Gulf Arab nations are currently drafting a United Nations (UN) Security Council resolution aimed at condemning Iran for the blockade of the Strait. Meanwhile, Iran maintains its claim of sovereignty over the waterway, shared with Oman, based on its territorial position. This geopolitical deadlock suggests a sustained period of tension that will likely continue to exert upward pressure on energy prices. The geopolitical risk premium is notably resurgent, occurring approximately two months after the initial onset of the conflict on 28 February.
Figure 1. Brent and WTI Futures Contracts (2022–2026). Source: Data from the ICE-EUR and NYMEX Exchanges; Own analysis conducted via TradingView.
Palantir exceeds market consensus on revenue and EPS
Palantir Technologies (PLTR) outperformed analyst expectations in its Q1 2026 earnings report, delivering strong results across both total revenue and earnings per share (EPS). The company reported revenue of $1.63 billion, comfortably exceeding the projected $1.54 billion. EPS was reported at $0.33, surpassing the estimate of $0.28. These figures represent a year-on-year (YoY) revenue growth rate of 84.6% and a remarkable 153% YoY increase in earnings, underscoring the company’s aggressive growth trajectory. Despite these robust results, Palantir’s shares exhibited only marginal movement during post-market trading.
Quarterly US financial results
The first-quarter 2026 earnings season continues this week. The following key institutions are scheduled to report, which may contribute to further volatility in the US equity markets:
Monday
- Palantir Technologies (PLTR)
Tuesday
- Advanced Micro Devices (AMD)
Wednesday
- Walt Disney Company (DIS)
- Uber Technologies (UBER)
Thursday
- McDonald’s Corporation (MCD)
- Gilead Sciences (GILD)
- Airbnb Inc. (ABNB)
Key economic events this week
Several critical economic indicators are scheduled for release this week, with the following being of particular importance to market participants:
Tuesday
- Australia: RBA Interest Rate Decision
- US: ISM Services PMI
- US: JOLTs Job Openings
Wednesday
- Canada: Ivey PMI
- US: EIA Crude Oil Stocks Change
- US: ADP Employment Change
Thursday
- Australia: Balance of Trade
Friday
- Germany: Balance of Trade
- Canada: Unemployment Rate
- US: Unemployment Rate
- US: Non Farm Payrolls
- US: Michigan Consumer Sentiment
