WS #14425

The Middle East conflict remains the dominant narrative, with tensions escalating due to recent attacks on Saudi infrastructure and the potential for further disruption in key maritime routes like the Strait of Hormuz. The geopolitical instability is causing market uncertainty, particularly in energy and defense sectors. The Fed's hawkish stance continues to influence market sentiment, but the focus has shifted towards the Middle East's impact on global oil supply and prices. The tech sector remains mixed, with some positive developments in AI and earnings reports, but overall, the market is reacting to the geopolitical tensions rather than fundamental economic indicators.