UBS: Markets can absorb elevated oil costs as brent holds above $100

Brent crude has remained above $100 a barrel this week, supported by geopolitical tensions and a tighter physical supply, UBS Global Wealth Management said on 10 September 2026.

Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said resilient corporate earnings, sustained investment in artificial intelligence and diversified portfolios should help global markets withstand the higher energy costs.

Markets seen absorbing higher energy costs

We believe that global equity markets can continue to rise despite the increase in energy costs. We continue to favor our Transformational Innovation Opportunities in AI, Energy and resources, and Longevity, which should benefit from higher investment, productivity gains and structural growth.

Mark Haefele, Chief Investment Officer, UBS Global Wealth Management

Commodities as a portfolio hedge

The renewed rise in oil prices follows a period of relative calm: Brent had traded close to $80 a barrel earlier this year, after a US-Iran agreement over the Strait of Hormuz temporarily eased supply concerns.

"We recommend broad exposure to commodities, as we believe they can offer both a structural source of returns and diversification in scenarios where an energy disruption or a pickup in inflation challenges equities and bonds. Electrification, rising electricity demand, investment in AI infrastructure and limited supply support the long-term outlook for this asset class."

Mark Haefele, Chief Investment Officer, UBS Global Wealth Management