WS #15858

Geopolitical tensions in the Middle East are escalating sharply, with reports of Iranian strikes on maritime vessels in the Strait of Hormuz and a Houthi missile strike on Saudi Aramco. This development directly counters the previous de-escalation narrative, reigniting supply chain risks for global energy markets and pressuring shipping and airline equities. Concurrently, the US Federal Reserve faces a governance crisis as the Trump administration moves to fire Governor Lisa Cook, raising concerns over central bank independence just ahead of a critical inflation data release. In corporate news, a major earnings and M&A day is underway. Liquidia (LQDA) surged 40% on a $380.7M settlement with United Therapeutics, while BofA reported a 17% profit drop due to a $1.2B fine. Macro signals are mixed: ASML beat guidance on AI demand, but Susquehanna is broadly cutting price targets across the solar and energy storage sector (RUN, PLUG, FLNC, ENPH), signaling near-term headwinds. The market is now pricing in a high-volatility session driven by the intersection of geopolitical supply shocks and macro uncertainty.