Oil shock dominated markets this week as Strait of Hormuz tensions and Middle East attacks pushed crude above $100, injecting inflation concerns across all asset classes.

Oil shock dominated markets this week as Strait of Hormuz tensions and Middle East attacks pushed crude above $100, injecting inflation concerns across all asset classes. The Federal Reserve's easing narrative fractured following hotter inflation data and rising energy prices, forcing markets to reassess rate cut expectations. Treasury yields and the dollar surged higher while equities faced pressure despite strong AI developments from NVIDIA and Micron. With rates rising and the dollar strengthening, traditional safe havens like bonds and commodities outside energy struggled. Cash emerged as the only consistent refuge as geopolitical risks and tightening financial conditions dominated price action over earnings and valuations.