This Week in Review | Oil Prices, UK Politics, Tech Stocks (June 26, 2026)

The episode opens with a weekly market review segment covering three major stories. First, Brent crude oil prices have declined from the low $80s to approximately $73 per barrel, falling back to pre-Iran war levels by the morning of broadcast. While tensions briefly spiked prices on Thursday, they settled around $72. The speakers note that despite the fragile US-Iran agreement, markets have largely moved past the geopolitical shock—oil prices have been falling since hitting a wartime high in April, and capital markets bottomed out in March before bouncing back by mid-April. They emphasize that markets recover from geopolitical shocks faster than expected, and Brent crude futures for 2027 are priced around $70, indicating diminishing strategic importance of the Strait of Hormuz.

Second, the transcript discusses UK political turmoil. On Monday, Prime Minister and Labour Party leader Keir Starmer announced his resignation, though he will remain in post until a successor is chosen. Andy Burnham, the former mayor of Manchester, is widely expected to become the UK's sixth prime minister in seven years. His main rival has already withdrawn, suggesting an uncontested nomination process beginning in July. The speakers argue that while this adds near-term uncertainty, the market impact is minimal because Starmer's vulnerability has been known for months and largely priced into UK stocks and gilts. They note that UK political turnover has become normalized over the past decade, reducing its power to surprise markets.

Finally, the episode addresses a pullback in tech stocks blamed on investor concerns about inflated valuations and excessive artificial intelligence spending. After months of AI-driven gains, the rally reversed as investors fear that even soaring profits won't keep pace with billions spent on data center buildout. The speakers acknowledge pressure on AI leaders to lower prices creates real growth headwinds. However, they counsel that the strong economy and easing oil prices provide encouragement, and the pullback simply reflects the gap between high expectations and reality, creating opportunities for markets to continue climbing the "wall of worry."