WS #1503

Geopolitical tensions in the Middle East remain the dominant market signal, with multiple sources corroborating ongoing military escalations and their impact on oil supply chains. The U.S. has used bunker busters on Iranian missile sites near the Strait of Hormuz, while Israel targeted Iran's intelligence minister and struck Beirut, and Iranian revenge strikes caused destruction in Israel. These developments sustain immediate risks to oil flows and global shipping, reinforcing a risk-off environment. However, counter-signals include Iran continuing to move its own oil through the strait, potentially mitigating supply disruptions, and the White House announcing Proctor & Gamble's assistance in reopening the strait, which could ease constraints. In technology, Micron's earnings tonight are a focal point, with retail trading gains on MU calls indicating speculative interest, while Tencent's 13% sales rise supports broader AI sector sentiment. Macroeconomic data shows China's coal sales volume declined by 5.5% in February, hinting at economic softening, and oil majors cutting green spending for the first time since 2017 may affect energy transition stocks.