WS #12300
Geopolitical tensions in the Middle East are escalating sharply, with Iran attacking Kuwait and striking targets in Iraqi Kurdistan, while the Strait of Hormuz crisis deepens as only 10 ships transited in the last 24 hours (17% of normal). Brent crude surged 4.74% and WTI 4.76%, with oil tankers facing a 'worst case scenario' according to maritime risk CEO. The US-Iran conflict is intensifying, with US missiles striking Kharg Island again and IRGC drones hitting tankers. This is driving a broad risk-off move in equities, with European shares extending declines and tech stocks selling off. The AI/tech selloff continues as Nvidia briefly lost its title as world's most valuable company to Apple, and SpaceX shares slid below IPO price. The Taylor Farms cyclospora outbreak is expanding, with the company pulling shredded lettuce from distribution to customers including Yum Brands and Cisco, and a first lawsuit filed. On the positive side, BMO raised Alphabet's price target to $455, and Stripe submitted a $53B unsolicited bid for PayPal. The macro narrative is ESCALATING on geopolitical risk, with oil prices surging and risk assets under pressure.
Topics
Key developments
- Iran attacks Kuwait and Iraqi Kurdistan, Strait of Hormuz traffic collapses to 17% of normal
- Brent crude surges 4.74%, WTI +4.76% as Iran conflict escalates
- Nvidia briefly loses world's most valuable company title to Apple as AI selloff deepens
- SpaceX shares slide below IPO price of $135, wiping out $1 trillion in value
- Taylor Farms pulls shredded lettuce from distribution to Yum Brands, Cisco; first lawsuit filed
- Stripe submits unsolicited $53 billion bid for PayPal
- BMO Capital raises Alphabet price target to $455, maintains Outperform
- Netflix stock falls below 200-day moving average by largest margin in 4 years; Goldman Sachs lowers PT to $94