Professional investors are reshuffling portfolios as crude oil surges past $100 a barrel , rotating into sectors tied to commodities while adding hedges against the risk that geopolitical tensions could trigger a broader economic shock. The jump in energy prices tied to the Middle East conflict is prompting money managers to rethink positioning. Many say the focus now is on maintaining exposure to equities while diversifying across sectors and regions that can better withstand higher inflation and volatility. West Texas Intermediate crude climbed above $100 a barrel in overnight trading for the first time since 2022 after major oil producers in the region cut output amid the continued closure of the Strait of Hormuz. Many on Wall Street view the $100 threshold as a potential tipping point for the global economy unless the conflict eases quickly and prices retreat. The S & P 500 fell for a third straight session Monday after losing 2% last week. Still, even with heightened volatility, U.S. stocks have remained resilient — with the S & P 500 trading only about 4% off its record high. Some investors say the oil rally doesn’t necessarily undermine the case for stocks. “The duration and extent of supply disruptions stemming from the conflict remain uncertain, but we believe a healthy economic and market backdrop provides a measure of reassurance,” said Brock Weimer, associate analyst in investment strat …
