WS #2484

The data dump reveals escalating military actions in the Middle East that directly threaten global energy supplies and market stability. Multiple sources report airstrikes on Tehran, ballistic missile launches toward Riyadh, and drone attacks on a U.S. base in Baghdad, with explosions in Bahrain following Iranian cluster-munitions impacts. These developments, corroborated by sources like FARS News, Worldsource24, and DiscloseTV, indicate a rapid intensification of the conflict, increasing the risk of prolonged Strait of Hormuz disruptions. Goldman Sachs has raised its 2026 oil price forecasts due to this 'largest-ever supply shock,' with Brent crude holding at $112, signaling sustained pressure on energy markets. The IEA chief reiterates that the crisis is worse than the 1970s oil shocks combined, emphasizing severe economic threats. In Asian markets, Japan's stocks are sliding due to Strait of Hormuz fears, and South Korea's KOSPI plunged 6% earlier, reflecting deepening risk-off sentiment. However, a counter-signal emerges from China, where southbound Stock Connect net buying reached HKD10 billion, suggesting capital flow support for Hong Kong/Chinese equities amid the turmoil. The U.S. and UK leaders agree on the need to reopen the strait, but technical discussions highlight challenges, with crypto prediction markets showing 57% odds of U.S. troops entering Iran soon, up from prior weeks. These events are likely to drive volatility in oil prices (affecting energy sector ETFs like XLE), defense stocks (e.g., LMT, RTX), and broader indices (SPY, QQQ) over the next 1-8 hours.