WS #15445

Geopolitical tensions in the Middle East are escalating, with the US asserting that Iran has lost control of the Strait of Hormuz and Iranian officials threatening to close the strait entirely. This development, combined with Houthi attacks on Saudi infrastructure, is driving a sharp repricing of energy and shipping assets. Concurrently, the US is softening its nuclear demands for Tehran, creating a complex dual narrative of military pressure and diplomatic maneuvering that is keeping volatility elevated across global markets. In the technology sector, a massive capital expenditure signal has emerged as SpaceX pursues $40 billion in financing to purchase Nvidia chips, validating the sustained demand for AI infrastructure despite broader macro headwinds. This is corroborated by CoreWeave's expansion into India via Adani, signaling a global buildout of data center capacity. Meanwhile, the UK bond market is showing signs of stress with gilt yields climbing to multi-year highs, reflecting inflation and fiscal concerns that are pressuring European equities and small-cap valuations.