The industrials sector, as represented by the XLI ETF, experienced a significant downturn of -1.50% due to broad market pressures. Escalating military hostilities between the U.S. and Iran in the Persian Gulf have driven Brent crude oil prices above $100 a barrel. This surge in energy costs is fueling concerns about resurgent inflation, which in turn is leading to expectations of further interest rate hikes by the Federal Reserve. As a sector sensitive to economic cycles and energy prices, industrials are being negatively impacted by this macroeconomic uncertainty.