Commodity currency carry trades recorded their best return in years, benefiting from the surge in oil prices.

In the forex market, with a daily average trading volume of $9.5 trillion, a widely used strategy is being boosted by the soaring oil prices, while the rise in oil prices is simultaneously impacting other global assets. Carry trades are recording their best returns in three years in some cases. The increase in oil prices triggered by the Iran war is helping to push the performance of this strategy, even as the conflict has led to significant volatility in the stock and bond markets, erasing gains in US Treasuries since 2026.