WS #1788

The data dump reveals escalating Middle East tensions with direct impacts on oil markets and global trade, alongside monetary policy signals. Multiple sources confirm a drone attack on Saudi Arabia's SAMREF refinery in Yanbu, corroborating earlier reports and sustaining bullish pressure on oil prices, with Brent crude surging to $116. Additional incidents include a merchant vessel struck near the UAE, a drone attack on Kuwait's Mina Al-Ahmadi refinery, and a missile strike on Qatar's Ras Laffan gas export terminal, indicating a broadening conflict targeting energy infrastructure. These events are driving supply disruption fears, evidenced by India's Nifty 50 dropping 3% due to oil price surges. Offsetting factors include the EU working with the UN to establish a safe passage through the Strait of Hormuz and Iran continuing oil exports despite disruptions, which may dampen extreme price spikes. In monetary policy, SNB Chairman Schlegel's comments highlight increased inflation uncertainty, a likelihood of negative rates, and readiness to intervene in forex markets to curb Swiss Franc appreciation, reinforcing its safe-haven status amid geopolitical risks. U.S. stock futures are declining, partly due to Trump's warnings to Iran, with specific focus on tech stocks like Micron and FedEx, while Alibaba's AI business is noted as undervalued, though broader market sentiment remains cautious.