WS #15436

Geopolitical tensions in the Middle East have escalated sharply, with US Secretary of State Marco Rubio stating that Iran has lost complete control of the Strait of Hormuz. This development has pushed Brent crude up 3.4% in the last 24 hours, reinforcing the bearish outlook for airlines and shipping while benefiting energy majors. Concurrently, a drone attack on an oil tanker in the Black Sea near Sochi has added to supply disruption fears, although the immediate impact on global benchmarks is currently overshadowed by the Hormuz narrative. In the technology sector, a massive capital expenditure signal has emerged: SpaceX is reportedly seeking $40 billion in financing (led by Apollo and PIMCO) to purchase Nvidia AI chips, with a deal expected to close in 2027. This underscores the insatiable demand for AI infrastructure and serves as a strong bullish catalyst for NVDA, despite recent insider selling. Meanwhile, Micron has agreed to a $600 million patent settlement with Netlist, causing NLST to jump 18%, though a union strike authorization at Micron's Taiwan facilities introduces a minor operational risk. Macroeconomic and political risks are also intensifying. The IMF has issued a stark warning to France regarding surging bond yields and political instability, adding to European sovereign debt concerns. In the crypto markets, Bitcoin has dropped below $84,000, triggering $550 million in liquidations, though institutional interest remains evident as Robinhood added $25 million in Bitcoin to its balance sheet. Regulatory headwinds continue for OpenAI, with Common Sense Media criticizing its new 'teen mode' as an unacceptable risk.