European Capital Goods: US-Iran peace framework - Key ideas from here

Research evidence excerpt

European Capital Goods: US-Iran peace framework - Key ideas from here

Global Research

16 June 2026ab

European Capital Goods Equities

Europe including UKUS-Iran peace framework - Key ideas from here

Industrial

Andre Kukhnin

Bottom line – Sentiment uplift although timing of full reopening still to come Analyst

through andre.kukhnin@ubs.com

Last night US and Iran announced a peace framework which could lead to the opening +44-20-7567 2162

of the Strait of Hormuz, with the US President stating this could be as reopened as soon Dini Magoon

as Friday. Reports suggest that the Strait could take longer to fully open with time Analyst

needed for the clearance of mines, with dates ranging from at least 30 days to 6 dini.magoon@ubs.com

months. The share price reactions yesterday have been driven by an easing of +44-20-7567 4037

uncertainty, while the direct economic impact from the mix of tapering inflation Jingyi Zheng

expectations vs near-term risk of supply chain disruptions remains a balancing act. We Analyst

believe that pricing ability will remain a key theme in the near term as inflation feed jingyi.zheng@ubs.com

through into the input costs given the >3 months supply shock so far. A potential full +44-20-7568 3962

peace deal would pave the way for a confidence rebuild that is required to sustain the Sven Weier

still nascent short cycle industry recovery we are witnessing currently. Analyst

sven.weier@ubs.com

Opportunities within sharp sell offs within Automation, Machinery & Buildings +49-69-1369 8278

With regards to stocks, excluding idiosyncratic stock reactions such as Alstom, we note Ed Hussey

that there is a number of opportunities within some of our key picks that have seen a Analyst

sharp reaction since the start of the war: edward.hussey@ubs.com

+44-20-7568 3946