All eyes have been on Islamabad in Pakistan and talks to agree on a more permanent ceasefire between the US and Iran. But no deal appears to have been reached with one week until Sunday’s ceasefire deadline, which seemed fairly obvious ahead of the historic meeting.  Any common ground on the most controversial issues appeared to be in very short supply. Iran still insists on its right to enrich uranium, which the US says they cannot accept. Another major point of disagreement is Iran’s demand to maintain control of and charge tolls on the Strait of Hormuz. Indeed, a ceasefire deal that leaves the Islamic regime in charge of the Strait is nothing but an overture to a new war in the future.

In any event, even if transit through the Strait of Hormuz resumes, the return of energy supplies is unlikely to be immediate. Output has already been reduced at oil and gas fields, while refinery operations have been curtailed or temporarily shut, suggesting that some supply disruptions may take weeks, or longer, to fully reverse. For markets, these one-off policy shocks now typically mean it takes up to a year to see the true impact in the economic data. That points to us all spending the next 6-12 months trying to figure out how much of this oil shock is inflationary, and how much it is deflationary via growth and spending channels.

We note that energy as a proportion of consumer spending has been falling for years, so it’s not 100% certain that an energy shock today is anything like an energy shock 25 or 50 years ago. In addition, people generally see that random policy shocks are fundamentally mean reverting as some or all of the actors have a finite pain threshold. That should be the case in the Middle East, but obviously uncertainty remains very high and likely continue to impact risk assets and havens. We keep in mind Trump’s usual maximalist strategy of escalate to de-escalate.

Otherwise, this week sees the start of another US quarterly earnings season, that will be a welcome change of pace from war, tariffs and what the Fed and other central bankers should do. It starts in earnest on Monday when key financial giants begin releasing like Goldman Sachs, JP Morgan, Wells Fargo and Citibank. Top of the mind may be the credit cycle and provisions in a softening economy, with risks to private market exposure also in focus.

In Brief: Major Data Releases of the Week

Monday, 13 April 2026

Earnings Season: The benchmark S&P 500 is forecast to see earnings growth of 13.2%, which would be the sixth straight quarter of double-digit growth. All sectors are expected to report revenue growth, with Tech, Communications and Financials leading. EPS guidance for Q1 has hit its highest level since Q3 2021. As always, Q1 earnings will kick off with the major US banks.

Tuesday, 14 April 2026

US PPI: The prior headline, before the Iran-related energy shock, rose to 3.4% y/y, the highest level since February 2025. That points to pipeline pressures and output prices intensifying further in March.

Thursday, 16 April 2026

Australia Jobs: Consensus expects 20k jobs added, lower than February’s 48.9k. The jobless rate is predicted to stay steady at 4.3%. This is the first ‘hard’ economic data since the Iran conflict began. 

China data: GDP is forecast at 4.8% y/y, three-tenths higher than in Q3, driven by strong export growth. The Lunar New Year may impact on local consumption figures. Housing and the consumer data will likely be in focus, as these have been the economic weak spots. 

UK GDP: February growth is seen at 0.3%, up from the previous flat print. This is backward-looking data that pre-dates the Iran war and energy shock. Price pressures and second round effects are likely more important for policymakers.