May 2026 was defined by a massive -19.3% drop in oil prices driven by US-Iran peace hopes, which fueled a rally in equities and a late-month recovery in bonds.
Key Takeaways
- 1.Brent crude oil saw its largest monthly decline since March 2020 (-19.3%) due to optimism surrounding a potential US-Iran deal.
- 2.Global equities performed strongly, with tech and chip stocks leading the way as AI excitement returned, and South Korea's KOSPI surging over 28%.
- 3.Sovereign bond yields reached multi-year highs mid-month (US 30yr at 5.18%, Bund 10yr at 3.19%) before rallying towards month-end as inflation fears eased.
Table of Contents
- Month in Review - The high-level macro overview
- Which assets saw the biggest gains in May?
- Which assets saw the biggest losses in May?
- Appendix 1
- Important Disclosures
- Analyst Certification
- Additional Information
- International Production Locations
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Authors
Henry AllenJim Reid
Securities
Brent CrudeSPXKOSPISOX10-year US TreasuryXAU
Themes
Artificial Intelligence Equity BoomMiddle East Geopolitical De-escalationStagflation Fears Easing
Regions
North AmericaMiddle EastAsia PacificUnited StatesIranSouth Korea