WS #12672

The dominant theme in this window is the continued escalation of the Middle East conflict, with multiple corroborating reports of Saudi airstrikes on Hodeidah port and airport in Yemen, and U.S. airstrikes in Iran. The Houthis have vowed a 'crushing response,' and Bahrain has reported warning sirens amid Iranian attack. This escalation is driving oil prices volatile, with Brent crude topping $100 earlier and WTI settling at $89.31, down 3.12% on the day but up 9.17% for the week. The conflict is also impacting shipping, with an LPG tanker with 28 Indian crew attacked near the Strait of Hormuz. On the macro front, Fed rate hike odds have surged to 82% for September as oil above $100 reignites inflation fears, with 2-year yields at 4.33%. The market closed mixed: Dow +0.45%, Nasdaq -0.64%, with Apple up 3.5% bucking the tech selloff. Trump threatened new tariffs on the EU over tech fines, adding to trade war fears. Paramount agreed to delay its Warner Bros. merger until June 2027 due to antitrust lawsuit. The overall narrative is one of escalating geopolitical risk and rising rate expectations, benefiting energy stocks but hurting tech and consumer sectors. The UN is ready to deploy a mechanism to secure fertilizer shipments in the Strait of Hormuz, which could counter some supply disruption fears.