Market Performance - Global equities surged on optimism regarding a potential de-escalation in the Iran conflict, with the three major US indices experiencing their best day since May of the previous year [4][10] - The Nasdaq led the gains, increasing by over 3.8%, while the S&P rose just shy of 3% and the Dow added around 2.5% [4] - Despite the rally, March was a challenging month for US markets, with all three main benchmarks ending between 4.5% and 5% lower, marking their worst quarterly performance in nearly four years [5][48] Sector Performance - In March, 10 out of 11 sectors ended the month down, with industrials suffering the most at nearly 9% decline, while energy was the only sector to close in positive territory, gaining 10% [6][50] - Year-to-date, the energy sector has gained close to 40%, with major companies like Exxon and Chevron seeing double-digit increases [50] Geopolitical Context - President Trump indicated that the US could end its military campaign in Iran within two to three weeks, which has contributed to market optimism [10][12] - The UAE is reportedly preparing to join a military coalition to reopen the Strait of Hormuz, which could significantly impact oil supply and pricing [14][18] - Analysts warn that if the Strait remains closed for an extended period, oil prices could potentially reach $200 per barrel [18] Currency and Oil Pricing - The ongoing conflict in Iran raises questions about the future of the US dollar's dominance, particularly in oil pricing, as the Middle East's oil is crucial to global trade [27][29] - There are indications that some Middle Eastern oil could start being priced in currencies other than the dollar, particularly the Chinese yuan, which could lead to a more multipolar currency system [33][35] - The US remains the world's largest oil producer, but much of its production is consumed domestically, which may not fully shield the dollar from potential shifts in global oil pricing [37][39]