Markets endured a turbulent week as geopolitical tensions in the Middle East sent energy prices sharply higher. Oil became the centre of global market anxiety, swinging wildly before ending the week significantly up. With the Strait of Hormuz—a critical global shipping artery—under threat, investors were forced to reassess inflation expectations, interest‑rate paths, and the durability of the current economic backdrop. Government bond yields rose across Europe and the US, equity markets wobbled, and sentiment turned decidedly cautious. European indices, more sensitive to energy costs, lagged behind their US counterparts, while only a narrow slice of tech stocks managed to hold their ground. The week was a reminder of how quickly geopolitical shocks can ripple through every major asset class.
The Background