WS #2712

The data dump reveals escalating energy market stress despite previous de-escalation signals, with oil prices rebounding over 3% and Slovenia becoming the first EU country to implement fuel rationing due to supply disruptions from the Iran conflict. This is corroborated by multiple sources highlighting the strategic importance of the Strait of Hormuz, with Iran asserting 'firm control' and Goldman Sachs raising its 2026 Brent forecast to $85/barrel (up from $77), citing potential supply shocks. Treasury yields are rising across the curve (2-year up 7.4 bps, 10-year up 4.2 bps, 30-year up 3.4 bps), signaling tightening financial conditions that could dampen equity gains, while global indices show mixed performance with notable declines in Asian markets like HSI (-3.54%) and NIFTY (-2.60%). Sector-specific signals include Softbank's potential $30 billion investment in OpenAI, which could boost AI-related stocks, and China's push in space startups, though these are overshadowed by the dominant energy and macro themes. The combination of geopolitical tensions, supply chain risks, and rising yields creates a volatile environment likely to pressure energy-sensitive sectors and broader equities in the near term.