The Dow Jones (DJI) fell by around 1,000 points last Friday as oil prices continued their climb. By the end of the day, the Dow closed 453 points lower. Stock markets previously enjoyed WTI crude prices on a downtrend since last June.
The cheap oil price story is over. When the U.S. and Israel attacked Iran, Iran attacked ships traversing the Strait of Hormuz. The U.S. tried to restore calm in the strait. However, insurers refused to provide coverage to ships amid the heightened risks.
WTI crude future prices topped $91.27. Markets are now speculating a price hike to $100/bbl. Of course, its target price is unpredictable. It is dependent on peace talks resuming with Iran.
Investors who hold technology stocks face growing valuation premium risks. AI-related names like Nvidia (NVDA) traded at the bottom of its July 2025 – March 2026 trading range. Conversely, Exxon Mobil (XOM) and Chevron (CVX) continued to march higher.
Historically, oil price spikes happening this fast (and not seen since 1983) would fade quickly. That might happen again. Investors who hold Devon Energy (DVN) and Occidental Petroleum (OXY) might consider trimming their position, in case WTI crude prices pull back.
Tech investors holding money-losing AI names like Bigbear (BBAI) or CoreWeave (CRVW) might need to reassess their risk levels. Other investors pivoted to beat-up software names like Adobe (ADBE), Salesforce (CRM), and Autodesk (ADSK). ADSK stock is up 7% in the last month.
