WS #2486

The Middle East conflict is escalating with immediate market-moving implications. IEA chief Fatih Birol warns of the 'most severe energy crisis in decades,' noting that 11 million barrels per day of oil have been lost, exceeding the combined impact of the 1970s oil shocks. This is corroborated by reports of oil prices stabilizing at elevated levels, with Brent near $112 and WTI testing $100, as investors weigh threats to energy infrastructure. The Strait of Hormuz remains blocked, threatening 20% of global oil shipments, directly impacting energy security and inflation globally. Concurrently, Asian markets are experiencing severe risk-off sentiment: South Korea's won has fallen to 1,510 per dollar, its lowest since 2009, and the KOSPI is down over 4%, while Japan's Nikkei dropped 3.5% to multi-month lows. Hedge funds are selling Asian emerging market equities at the fastest pace in a year, focusing on Taiwan and Korea, which could pressure semiconductor stocks like TSMC and Samsung. Bitcoin has fallen below $69,000 due to risk aversion, indicating spillover into digital assets. In corporate news, Microsoft has halted automatic installation of Copilot on Microsoft 365 devices, a potential setback for its AI rollout, while Volvo received a top software-defined vehicle rating, a positive for automotive tech. The situation remains highly volatile, with energy, tech, and broad equity markets bracing for further downside as the 48-hour U.S. deadline on Iran approaches.