WS #12689

The dominant signal in this window is the escalation of the Iran conflict and its impact on oil prices and global bonds. Multiple sources confirm Houthi missile strikes on Saudi Arabia, with Saudi air defenses intercepting missiles targeting Yanbu oil refineries. This follows Saudi strikes on Houthi targets in Yemen and US threats of 'major punishment' for Iran. The oil price surge is rekindling inflation fears, with global bonds selling off sharply - the Bloomberg Global Treasury Index yield hit its highest since 2008, and US 30-year yields approached 2007 highs. This is a significant escalation from the previous window's de-escalation narrative. Separately, Nvidia announced a $1 billion investment in Naver and expanded its SK Group partnership to build over 2 GW of AI data centers in South Korea, reinforcing the AI infrastructure buildout theme. The AI infrastructure narrative is ESCALATING, while the Iran conflict is also ESCALATING. The bond market selloff is a key second-order effect that could pressure equities broadly.