Finance

Crude oil prices have climbed sharply, with Brent benchmarks exceeding $100 per barrel due to Iranian control over the Strait of Hormuz. This supply-side shock has seen oil prices rise over 30% in a single month, significantly impacting energy sector valuations while weighing on broader consumer discretionary stocks.

U.S. Treasury yields have continued their upward trajectory, with the 10-year note recently hitting 4.44%, its highest level since mid-2025. Investors are increasingly concerned that persistent price pressures, exacerbated by high energy costs, will force the Federal Reserve to maintain elevated interest rates for longer than previously anticipated.

The tech-heavy Nasdaq has underperformed as mega-cap valuations face a steep correction, with the sector's forward price-to-earnings ratio dropping to a three-year low. While AI hardware remains a point of interest, recent legal setbacks for major platforms and shifting memory requirements for AI models have triggered sharp sell-offs in semiconductor and software giants.

Despite a general retreat from risk assets, Bitcoin has consolidated between $68,000 and $72,000, showing a tendency to recover quickly from geopolitical shocks. Institutional interest remains steady, evidenced by consistent inflows into U.S. spot Bitcoin ETFs even as other digital assets face pressure from regulatory uncertainty and waning rate-cut hopes.