Finance

Brent crude has climbed above $100 per barrel as geopolitical tensions in the Middle East, specifically involving Iran and the Strait of Hormuz, continue to disrupt global energy markets. This surge is creating a complex macroeconomic backdrop, adding upward pressure on inflation and impacting the profit margins of oil-dependent industries.

Markets are increasingly pricing out the possibility of interest rate cuts in 2026 as headline inflation remains well above the 2% target. Recent hawkish commentary and rising two-year Treasury yields suggest that the Federal Open Market Committee may maintain higher rates for longer or even consider tightening if inflationary pressures persist.

A significant performance gap has emerged within the technology sector, with hardware companies tied to AI and data centers outperforming software names. While AI-related capital expenditure remains robust, specific semiconductor stocks like Intel have recently faced sharp declines due to shifting market share and regulatory concerns.