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A Key Meeting Between Oil & Gas Leaders Takes Place This Week
The War in Iran Approaches One Month
Is "Stagflation" Coming Back to the U.S.?
What is going on in this Global Week Ahead?
Concerns over energy prices — and inflation — are set to shape the week ahead
As war rages in the Middle East
Energy chiefs gather in Houston, TX and
The first business sentiment PMI readings since the start of the conflict print
Next are Reuters’ five world market themes, re-ordered for equity traders—
(1) Global Oil and Gas Industry Leaders Meet at CERAWeek in Houston, TX
How the global energy sector deals with the impact of the Middle East conflict will become apparent when the industry's leaders kick off CERAWeek in Houston, Texas, on Monday.
CEOs of Saudi Aramco, Shell (SHEL - Free Report) and Chevron (CVX - Free Report) are among the many high-profile executives set to speak at the annual conference that runs until Friday.
U.S. Energy Secretary Chris Wright and other energy officials from Europe and Latin America are also on the agenda.
But the Middle East is not the only focus: Washington on Wednesday broadly authorized U.S. companies to do business with state-oil company PDVSA in Venezuela, home to the world's largest proven oil reserves.
Opposition leader Maria Corina Machado will attend the conference.
Energy (XLE) has been the best-performing S&P500 sector since the war started.
(2) The Iran War Will Be One Month Old
The Iran war is entering its fourth week with no sign of imminent de-escalation.
Markets have been febrile over concerns the conflict could destroy more energy and business infrastructure in the region, while Iran has effectively closed the Strait of Hormuz, an artery for energy transport.
Bets have risen in the markets that central banks, faced with flares in inflation and volatility, will have to hike interest rates, at least in Europe, or, in the case of the U.S. Federal Reserve, have no more scope to lower lending benchmarks.
Even previously resilient stock markets have begun to wobble, as traders shift baseline assumptions of economic growth and inflation.
Shuttle diplomacy will continue, with Gulf states expected to continue diplomatic coordination through ministerial level contacts while G7 foreign ministers meet in Paris on Thursday.
Most of Iran’s major energy facilities, as well as major assets in nearby countries, have been targeted.
(3) Via Flash PMIs, the "Stagflation" Word Likely Returns to Widespread Use
Flash business activity data for March released on Tuesday will give a first reading of how the war has hit corporate sentiment as markets fear the risk of stagflation has grown.
Most of the impact of higher energy costs, both direct and indirect, has yet to be felt, but PMI survey numbers will provide an early impression and offer a comparison between the impact on different parts of the world.
Investors consider Asia and Europe are much more exposed to higher energy costs than the U.S., though the effects will be global. Business activity picked up in most economies in February, and the danger is the war has caused a significant reversal.
Readings on input costs will be closely monitored. March data has already showed an increase in Europe and the U.S.
The Organization for Economic Cooperation and Development (OECD) will publish its interim economic outlook on Thursday.
(4) Japan’s Inflation Data Comes Out. BoJ Monetary Policy Must Heed It
Tuesday brings a new print of the Japanese inflation data that has determined the central bank's tightening cycle — and has been thrown off course by the Middle East crisis.
The previous reading showed annual core consumer inflation fell to a two-year low of +2.0% in January, matching the Bank of Japan's target.
It likely declined further to +1.7% in February, according to a Reuters poll of economists, but that data will not reflect the surge in energy costs from the war in Iran that has paralyzed the oil shipments on which Japan depends.
As it kept policy unchanged on Thursday, the BoJ struck a hawkish tone, warning about the impact of imported energy inflation on consumers.
Japan's currency is already suffering as the yen wallows near a 20-month low on mounting concerns over the nation's terms of trade.
(5) On Tuesday, Demark Votes for Prime Minister
Denmark, in focus as U.S. President Donald Trump's foreign policy forays resonate globally, holds an election on Tuesday.
Prime Minister Mette Frederiksen, seeking a third term, hopes to capitalize on strong support for her defiant stance against U.S. pressure over annexing Greenland.
The vote could be a barometer of Greenlanders' appetite for independence. The cost of living, a dominant theme in elections this year, is also a major concern for Danes.
Italy, meanwhile, holds a March 22-23 referendum on a highly contested government plan to reform the judiciary. Supporters hope it will modernize the legal system. Opponents reckon it will make it easier for the state to control prosecutors.
Tensions in the ruling coalition could surface if Italians vote “no." Italy's leader Giorgia Meloni is taking no chances, joining an irreverent podcast hosted by a popular rapper to reach younger voters to try to secure a "yes" vote.
Zacks #1 Rank (STRONG BUY) Stocks
Here are three Zacks #1 (STRONG BUY) picks, with solid long-term Zacks VGM scores of B.
(1) Allstate (ALL - Free Report) : This is a $204 a share stock, with a market cap of $52.9B. It is found in Zacks Insurance – Property & Casualty industry. The stock holds a Zacks Value score of A, a Zacks Growth score of C, and a Zacks Momentum score of B.
F12M P/E: 8.1.
Image Source: Zacks Investment Research
The Allstate Corporation is the third-largest property-casualty insurer and the largest publicly-held personal lines carrier in the U.S.
The company also provides a range of life insurance and investment products to its diverse customer base.
It provides insurance products to households through exclusive agencies and financial specialists in the U.S. and Canada.
(2) Telefonica Brasil (VIV - Free Report) : This is a $16 a share stock, with a market cap of $25.3B. It is found in the Zacks Diversified Communications industry. The stock holds a Zacks Value score of B, a Zacks Growth score of C, and a Zacks Momentum score of A.
F12M P/E: 17.3.
Image Source: Zacks Investment Research
Telefonica Brasil SA is engaged in providing communication, information and entertainment solutions in the telecommunication sector, in the State of Sao Paulo.
The company also provides multimedia communication services, local voice services, long-distance services, data services, Pay TV services, land-based wireless technology multichannel multipoint distribution service and network services.
(3) OMV (OMVKY - Free Report) : This is a $17 a share stock, with a market cap of $22.3B. It is found in the Zacks Oil and Gas - Integrated industry. The stock holds a Zacks Value score of A, a Zacks Growth score of D, and a Zacks Momentum score of B.
F12M P/E: 9.9.
OMV Aktiengesellschaft (OMV AG) is an Austria-based integrated oil and gas company.
It operates through two segments: Upstream and Downstream.
The Upstream segment focuses on the exploration, development and production of oil and gas in three core regions: Central and Eastern Europe (CEE), the North Sea, as well as the Middle East and Africa.
The Downstream segment comprises two business units: Downstream Oil, that operates around 3,800 filling stations in approximately 10 countries, refineries in Austria and Germany, both of which feature integrated petrochemical production, as well as the Petrobrazi refinery in Romania, which processes predominantly Romanian crude oil, and Downstream Gas, that focuses on gas trade and sales.
They also own a pipeline network and gas storage facilities in Austria.
Key Global Macro
A slew of manufacturing PMIs this week start to inform traders on the oil and gas shock.
On Monday, Australia’s S&P global manufacturing PMI for March comes out. The prior reading was 51.0.
On Tuesday, the Euro Zone’s HCOB manufacturing PMI for March comes out. The prior reading was 50.8.
The U.S. S&P global manufacturing PMI for March comes out. The prior reading was 51.7.
On Wednesday, the U.K.’s consumer price index (CPI) for February comes out. The prior broad CPI reading was ‘hot’ at +3.0% y/y. Core CPI was +3.1% y/y.
On Thursday, the Fed’s Cook, Miran, Jefferson, Logan and Barr give speeches.
On Friday, the University of Michigan consumer sentiment index for March comes out. The prior mark was a low 55.5.
Conclusion
What Zacks Research Director Sheraz Mian had for us, on March 18th, 2026—
(1) Total S&P500 earnings in the first quarter of 2026 are currently expected to increase by +12.0% from the same period last year, on +8.6% higher revenues.
This would follow the +14.0% increase in earnings, on +9.1% higher revenues in the preceding period (Q4-25).
(2) Estimates for Q1-26 and full-year 2026 remain positive, with the favorable revisions trend firmly in place even after the start of the Middle East conflict.
(3) Estimates for the Energy sector have moved higher since the start of March.
But estimates have also increased for 8 other Zacks sectors, including Tech, Finance, Construction, Basic Materials, and Utilities.
(4) The Tech sector has been a critical growth pillar since Q3-23 and is expected to play that role in Q1-26 as well, with expected earnings growth of +24.6%.
Excluding the Tech sector’s substantial contribution, Q1-26 earnings growth for the rest of the S&P500 index would be +5.5% (versus +12.0% otherwise).
One thing to keep in mind, in these Oil & Gas headline-driven times?
The underlying S&P500 earnings and revenue growth backdrop remains favorable.
Don’t get too carried away, by the ongoing developments, tied to the blockade of the Strait of Hormuz.
Swift positive and negative event surprises can surface, at any time.
Enjoy this week’s trading and investing!
John Blank, PhD. Zacks Chief Equity Strategist and Economist
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Image: Bigstock
Oil and Gas Leaders Meet: Global Week Ahead
Key Takeaways
What is going on in this Global Week Ahead?
Next are Reuters’ five world market themes, re-ordered for equity traders—
(1) Global Oil and Gas Industry Leaders Meet at CERAWeek in Houston, TX
How the global energy sector deals with the impact of the Middle East conflict will become apparent when the industry's leaders kick off CERAWeek in Houston, Texas, on Monday.
CEOs of Saudi Aramco, Shell (SHEL - Free Report) and Chevron (CVX - Free Report) are among the many high-profile executives set to speak at the annual conference that runs until Friday.
U.S. Energy Secretary Chris Wright and other energy officials from Europe and Latin America are also on the agenda.
But the Middle East is not the only focus: Washington on Wednesday broadly authorized U.S. companies to do business with state-oil company PDVSA in Venezuela, home to the world's largest proven oil reserves.
Opposition leader Maria Corina Machado will attend the conference.
Energy (XLE) has been the best-performing S&P500 sector since the war started.
(2) The Iran War Will Be One Month Old
The Iran war is entering its fourth week with no sign of imminent de-escalation.
Markets have been febrile over concerns the conflict could destroy more energy and business infrastructure in the region, while Iran has effectively closed the Strait of Hormuz, an artery for energy transport.
Bets have risen in the markets that central banks, faced with flares in inflation and volatility, will have to hike interest rates, at least in Europe, or, in the case of the U.S. Federal Reserve, have no more scope to lower lending benchmarks.
Even previously resilient stock markets have begun to wobble, as traders shift baseline assumptions of economic growth and inflation.
Shuttle diplomacy will continue, with Gulf states expected to continue diplomatic coordination through ministerial level contacts while G7 foreign ministers meet in Paris on Thursday.
Most of Iran’s major energy facilities, as well as major assets in nearby countries, have been targeted.
(3) Via Flash PMIs, the "Stagflation" Word Likely Returns to Widespread Use
Flash business activity data for March released on Tuesday will give a first reading of how the war has hit corporate sentiment as markets fear the risk of stagflation has grown.
Most of the impact of higher energy costs, both direct and indirect, has yet to be felt, but PMI survey numbers will provide an early impression and offer a comparison between the impact on different parts of the world.
Investors consider Asia and Europe are much more exposed to higher energy costs than the U.S., though the effects will be global. Business activity picked up in most economies in February, and the danger is the war has caused a significant reversal.
Readings on input costs will be closely monitored. March data has already showed an increase in Europe and the U.S.
The Organization for Economic Cooperation and Development (OECD) will publish its interim economic outlook on Thursday.
(4) Japan’s Inflation Data Comes Out. BoJ Monetary Policy Must Heed It
Tuesday brings a new print of the Japanese inflation data that has determined the central bank's tightening cycle — and has been thrown off course by the Middle East crisis.
The previous reading showed annual core consumer inflation fell to a two-year low of +2.0% in January, matching the Bank of Japan's target.
It likely declined further to +1.7% in February, according to a Reuters poll of economists, but that data will not reflect the surge in energy costs from the war in Iran that has paralyzed the oil shipments on which Japan depends.
As it kept policy unchanged on Thursday, the BoJ struck a hawkish tone, warning about the impact of imported energy inflation on consumers.
Japan's currency is already suffering as the yen wallows near a 20-month low on mounting concerns over the nation's terms of trade.
(5) On Tuesday, Demark Votes for Prime Minister
Denmark, in focus as U.S. President Donald Trump's foreign policy forays resonate globally, holds an election on Tuesday.
Prime Minister Mette Frederiksen, seeking a third term, hopes to capitalize on strong support for her defiant stance against U.S. pressure over annexing Greenland.
The vote could be a barometer of Greenlanders' appetite for independence. The cost of living, a dominant theme in elections this year, is also a major concern for Danes.
Italy, meanwhile, holds a March 22-23 referendum on a highly contested government plan to reform the judiciary. Supporters hope it will modernize the legal system. Opponents reckon it will make it easier for the state to control prosecutors.
Tensions in the ruling coalition could surface if Italians vote “no." Italy's leader Giorgia Meloni is taking no chances, joining an irreverent podcast hosted by a popular rapper to reach younger voters to try to secure a "yes" vote.
Zacks #1 Rank (STRONG BUY) Stocks
Here are three Zacks #1 (STRONG BUY) picks, with solid long-term Zacks VGM scores of B.
(1) Allstate (ALL - Free Report) : This is a $204 a share stock, with a market cap of $52.9B. It is found in Zacks Insurance – Property & Casualty industry. The stock holds a Zacks Value score of A, a Zacks Growth score of C, and a Zacks Momentum score of B.
F12M P/E: 8.1.
Image Source: Zacks Investment Research
The Allstate Corporation is the third-largest property-casualty insurer and the largest publicly-held personal lines carrier in the U.S.
The company also provides a range of life insurance and investment products to its diverse customer base.
It provides insurance products to households through exclusive agencies and financial specialists in the U.S. and Canada.
(2) Telefonica Brasil (VIV - Free Report) : This is a $16 a share stock, with a market cap of $25.3B. It is found in the Zacks Diversified Communications industry. The stock holds a Zacks Value score of B, a Zacks Growth score of C, and a Zacks Momentum score of A.
F12M P/E: 17.3.
Image Source: Zacks Investment Research
Telefonica Brasil SA is engaged in providing communication, information and entertainment solutions in the telecommunication sector, in the State of Sao Paulo.
The company also provides multimedia communication services, local voice services, long-distance services, data services, Pay TV services, land-based wireless technology multichannel multipoint distribution service and network services.
(3) OMV (OMVKY - Free Report) : This is a $17 a share stock, with a market cap of $22.3B. It is found in the Zacks Oil and Gas - Integrated industry. The stock holds a Zacks Value score of A, a Zacks Growth score of D, and a Zacks Momentum score of B.
F12M P/E: 9.9.
OMV Aktiengesellschaft (OMV AG) is an Austria-based integrated oil and gas company.
It operates through two segments: Upstream and Downstream.
The Upstream segment focuses on the exploration, development and production of oil and gas in three core regions: Central and Eastern Europe (CEE), the North Sea, as well as the Middle East and Africa.
The Downstream segment comprises two business units: Downstream Oil, that operates around 3,800 filling stations in approximately 10 countries, refineries in Austria and Germany, both of which feature integrated petrochemical production, as well as the Petrobrazi refinery in Romania, which processes predominantly Romanian crude oil, and Downstream Gas, that focuses on gas trade and sales.
They also own a pipeline network and gas storage facilities in Austria.
Key Global Macro
A slew of manufacturing PMIs this week start to inform traders on the oil and gas shock.
On Monday, Australia’s S&P global manufacturing PMI for March comes out. The prior reading was 51.0.
On Tuesday, the Euro Zone’s HCOB manufacturing PMI for March comes out. The prior reading was 50.8.
The U.S. S&P global manufacturing PMI for March comes out. The prior reading was 51.7.
On Wednesday, the U.K.’s consumer price index (CPI) for February comes out. The prior broad CPI reading was ‘hot’ at +3.0% y/y. Core CPI was +3.1% y/y.
On Thursday, the Fed’s Cook, Miran, Jefferson, Logan and Barr give speeches.
On Friday, the University of Michigan consumer sentiment index for March comes out. The prior mark was a low 55.5.
Conclusion
What Zacks Research Director Sheraz Mian had for us, on March 18th, 2026—
(1) Total S&P500 earnings in the first quarter of 2026 are currently expected to increase by +12.0% from the same period last year, on +8.6% higher revenues.
This would follow the +14.0% increase in earnings, on +9.1% higher revenues in the preceding period (Q4-25).
(2) Estimates for Q1-26 and full-year 2026 remain positive, with the favorable revisions trend firmly in place even after the start of the Middle East conflict.
(3) Estimates for the Energy sector have moved higher since the start of March.
But estimates have also increased for 8 other Zacks sectors, including Tech, Finance, Construction, Basic Materials, and Utilities.
(4) The Tech sector has been a critical growth pillar since Q3-23 and is expected to play that role in Q1-26 as well, with expected earnings growth of +24.6%.
Excluding the Tech sector’s substantial contribution, Q1-26 earnings growth for the rest of the S&P500 index would be +5.5% (versus +12.0% otherwise).
One thing to keep in mind, in these Oil & Gas headline-driven times?
The underlying S&P500 earnings and revenue growth backdrop remains favorable.
Don’t get too carried away, by the ongoing developments, tied to the blockade of the Strait of Hormuz.
Swift positive and negative event surprises can surface, at any time.
Enjoy this week’s trading and investing!
John Blank, PhD.
Zacks Chief Equity Strategist and Economist