UBS has released a report suggesting that a diplomatic resolution to the Middle East conflict could redirect investor attention to economic fundamentals. Despite ongoing tensions, UBS maintains that global and U.S. equities remain attractive, forecasting a robust first-quarter earnings season in the U.S. with a projected 17% rise in earnings per share, marking the fastest growth since late 2021. The bank acknowledges challenges in achieving a lasting ceasefire in the Middle East and notes that even if shipping through the Strait of Hormuz resumes, energy markets will need time to stabilize. Consequently, UBS has raised its Brent crude oil price forecast for end-June from $90 to $100 per barrel. The bank has also downgraded its outlook on equity markets sensitive to high fuel costs, such as the eurozone and India, from "attractive" to "neutral."