Leisure Weekly: Thoughts & Valuations: The week that was

Research evidence excerpt

Leisure Weekly: Thoughts & Valuations: The week that was

Deutsche Bank

Research

Europe Industry Date

18 May 2026

Leisure & Hotels Leisure Weekly:

Gaming Periodical

Thoughts &

Valuations

The week that was

Andre Juillard

The Iran war is 80 days old as of today, with no obvious end in sight, whilst the Strait

Research Analyst

of Hormuz remains closed. Notably though, the truce and ceasefire period (41 days) +33-1-4495-6585

has now lasted longer than the initial kinetic phase (39 days). While an end to the

ceasefire clearly cannot be ruled out, the fact this stalemate has persisted for so Tim Barrett

long suggests the US would prefer to avoid that route, given the political and

+44-20-7541-1559

economic consequences—particularly the political ones in an election year. As a

result, the tense stalemate continues. Richard Stuber

For markets, the ongoing closure of the Strait of Hormuz and the prospect of a fresh +44-20-754-54617

escalation has pushed oil prices higher this morning. Brent crude is up +1.77% to Shubhi Bansal

a two-week high of $111.19/bbl. And it’s clear that investors are pricing in a more Research Associate

protracted conflict, as the 6-month Brent future is also up to $92.14/bbl this

morning, which would be its highest closing level since the conflict began.

Those oil moves have exacerbated fears about a stagflationary shock, which has

pushed global bond yields even higher. For instance, the 10yr Treasury yield

(+3.2bps) is now up to 4.63%, its highest level in the last year, whilst the 30yr yield

(+3.4bps) is up to 5.15%, which would be another post-2007 high. The bond move

will no doubt be a major topic at the two-day G7 finance ministers’ meeting starting

today in Paris. The meeting was billed as an opportunity to discuss global