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Source: Bloomberg Finance L.P., as of March 31, 2026. Market implied inflation expectations shown using 1-year and 5-year inflation swaps.▸Closure of the Strait of Hormuz creates asupply shock▹Higher oil prices pressure agriculturaland industrial inputs▹Duration of price shock more importantthan magnitude▸Federal Reserve likely to remain on hold asit assesses evolving risks▹Headline inflation expected to risethough uncertainty remains regardingpassthrough to core inflation and labormarkets▹Fed to look through supply-side energyshock if inflation expectations remainanchored44%61%55%34%32%0%25%50%75%Brent Crude$96.79Nat. Gas (Eur) €55.28Urea Ammonia PolyethylenePrice Change of Energy Commodities*Since February 273.2%2%3%4%Jan-25 Apr-25 Jul-25 Oct-25 Jan-26HundredsForward Inflation ExpectationsJanuary 1, 2025 to March 31, 20261-year5-year*Brent Crude are quoted in dollars per barrel based on the front-month futures contract. Natural gasprices are quoted in euros per megawatt-hour. Ammonia, and urea prices are based on the front-monthexchange-traded futures contract. Polyethylene is price are based on the active exchange-tradedfutures contract.Market Pricing Conflict In IranCity of San LeandroFor the Quarter Ended March 31, 2026Market UpdatePFM Asset Management | pfmam.com4Resolution No. 2026-064Page 4 of 60