Weekly Market Recap: Tensions Rise Amid Energy Price Surge and Geopolitical Uncertainty

The week commenced with heightened geopolitical tensions as former President Trump announced that the US is nearing its objectives in the ongoing conflict with Iran. This statement, alongside UK approval for the US to use British bases for potential strikes against Iranian missile sites, has further escalated the situation. The resulting fears of supply disruptions contributed to a noticeable spike in energy prices, impacting stocks across different sectors. Furthermore, Iraq's declaration of force majeure on foreign-operated oilfields due to disruptions in the Hormuz Strait added to the uncertainty, driving oil prices upward. Overall, this week saw a shift in investor focus toward energy stocks and commodities, reflecting concerns about potential supply constraints. On the corporate front, Super Micro's co-founder resigned following his indictment for smuggling charges, which may have implications for investor confidence in technology and semiconductor stocks. As a result, the technology sector underperformed, while energy stocks benefited from rising prices.