ILIM Quarter in Review: Q1 2026
by Irish Life Financial Services
Written by Irish Life staff
Market News • 10 April 2026 • 3 min read
ILIM Quarter in Review: Israeli-US war upends markets
This blog was written by Irish Life staff based on content produced by Irish Life's investment managers (ILIM).
Click here to read the ILIM report in full (PDF)
Key takeaways from Q1 2026
Israel and the US go to war with Iran, triggering a major energy crisis.
Before this, easing inflation and robust growth gave a positive outlook.
A surge in oil prices and revision of rate expectations followed the Iran war.
Historic energy shock
Over the quarter, the US‑Israeli war with Iran became the dominant macro driver, triggering a historic energy shock after the effective closure of the Strait of Hormuz and damage to regional energy infrastructure.
Trump tariffs ruled unlawful
The US Supreme Court ruled that previous tariffs imposed by Trump were unlawful.
The US imposed a 10% global tariff in response; markets reacted fairly calmly.
US businesses can claim tariffs back, but the consumers who actually paid them remain out of pocket.
2026 energy crisis
Global market reaction
The Eurozone economy remained resilient at the start of 2026, but the outlook deteriorated as the quarter progressed and the energy shock intensified.
Europe, heavily dependent on imported oil and LNG and entering spring with low gas inventories, became the epicentre of the energy shock, with preliminary data showing Eurozone inflation rising and the ECB revising up its 2026 inflation projections, explicitly citing the Middle East conflict and higher energy prices.