Global Markets Rally as Tech Surge Defies Energy Slump

The broader rally masks a sharp divergence in commodities and currency markets. Brent oil suffered its steepest quarterly decline since 2020, shedding nearly 40% of its value. This collapse followed a fragile ceasefire between the United States and Iran that eased tensions in the Strait of Hormuz, allowing tankers previously stranded in the Gulf to return to global supply routes.

Simultaneously, the U.S. dollar extended its winning streak to a fourth consecutive quarter. Driven by the prospect of Federal Reserve interest rate hikes and a widening economic gap between the U.S. and its peers, the greenback’s strength forced a 14% retreat in gold prices. The pressure on global currencies was particularly acute for the Japanese yen, which plummeted to a 40-year low against the dollar.