Higher oil clouds Wall Street’s earnings outlook

UBS analysts estimate capital expenditure spending by the “hyperscalers” this year will hit US$770bil. — Reuters

US companies face structurally higher oil prices this year even if the Iran war ends soon, meaning investors may need to rethink those sunny 2026 corporate earnings forecasts.

Heading into the year, the consensus 2026 outlook for oil was fairly bearish, while the earnings forecasts for Wall Street were pretty optimistic.