WS #15419

Geopolitical tensions in the Middle East have escalated sharply, with Iranian forces opening fire on merchant ships in the Strait of Hormuz and a major Russian strike on Ukraine's energy sector. This has triggered a flight-to-safety dynamic, lifting oil prices and pressuring European equities, though the IEA's consideration of strategic reserve releases provides a partial offset to the supply shock. Concurrently, the US equity market hit an all-time high, driven by a relentless AI-capex narrative that is now being amplified by SpaceX's $40 billion commitment to Nvidia, signaling sustained institutional demand for semiconductor infrastructure despite macro headwinds.