Global markets are once again on edge as rising tensions of the war between the United States and Iran threaten one of the world’s most critical oil supply routes. With disruptions around the Strait of Hormuz pushing energy prices higher, fears of a prolonged shock are creeping in. Add to that a stagflation-like backdrop – sticky inflation, slowing growth, and a softening job market – and the mood across Wall Street is clearly cautious. Even high-flying tech stocks are feeling the pressure as rising costs and tighter financial conditions weigh on future growth bets.
According to investment firm Schroders, history offers a clear pattern; during past oil shocks, defensive and commodity-linked sectors have often outperformed, delivering steady gains while broader markets struggled. Sectors like consumer staples, in particular, tend to hold firm thanks to their essential, everyday demand. In contrast, growth-heavy sectors like tech are often under pressure.
