In the first quarter of 2026, international financial markets were noticeably influenced by political developments in the United States. Alongside geopolitical tensions surrounding Venezuela and Ukraine, it was in particular the military intervention by Israel and the United States in Iran that left a marked imprint on global financial markets.

At the start of the first quarter, sentiment was still characterised by optimism and hopes of a soft economic landing. Falling bond risk premiums and rising equity markets were evident. Several equity indices reached new record highs. However, sentiment shifted abruptly towards the end of February. The immediate trigger was the military escalation between the United States, Israel and Iran. Commodity markets, in particular, were affected. Significant disruptions to the strategically important Strait of Hormuz corridor had immediate repercussions for global capital markets. Oil and gas prices, in particular, reacted to the developments with sharp risk-driven swings. In March, the price of a barrel of Brent crude temporarily surged to nearly USD 120. Around one-fifth of global oil trade passes through the Strait of Hormuz.

Recurring conflicting signals contributed to sustained uncertainty. Accordingly, financial markets fluctuated last month, oscillating between concerns over escalation and hopes for a near-term easing.

Inflation concerns pushed bond yields noticeably higher. High energy prices sparked fears among market participants of a renewed rise in inflation data, alongside expectations of more cautious or increasingly restrictive central bank policies. In March, investors were anticipating as many as three ECB interest rate hikes this year. So far, central banks have maintained their policy stance but highlighted a significantly increased upside risk to inflation as a result of the Middle East conflict. The longer the conflict and disruptions to air and maritime traffic persist, the greater the likely impact on the global economy.

The US dollar strengthened in the first quarter. The euro declined by approximately 1.65 % against the US dollar. Against the Norwegian krone, the euro fell by around 5.1 %.

In this challenging environment, LiLux Rent posted a performance of -0.1 %.