Markets Pivot: Oil Prices Drop as Trump Eases Iran Fears — Tech Slumps, Cyclicals Surge on Strong U.S. Data

Markets Pivot: Oil Prices Drop as Trump Eases Iran Fears — Tech Slumps, Cyclicals Surge on Strong U.S. Data
Over the past week, global financial markets and commodity prices have reflected a pronounced shift in investor psychology. Key drivers include easing geopolitical risk around Iran, fresh U.S. macroeconomic data, and a rotation away from long-duration growth stocks into cyclicals and value sectors.  For U.S. investors navigating the 2026 market transition, this juncture signals both tactical rebalancing opportunities and strategic positioning for the next phase of the economic cycle. Oil Prices Reverse after Geopolitical Risk Premium Eases Oil prices fell sharply this week after U.S. President Donald Trump delivered remarks that calmed fears of imminent escalation in Iran. Brent and West Texas Intermediate (WTI) crude futures slipped about 2–3% from recent multi-month highs as markets digested the prospect that heightened tensions may not evolve into direct conflict or supply disruptions.  Trump’s comments that killings in Iran’s internal protests had subsided and that imminent military a…