WS #14445

The market continues to be shaped by escalating Middle East tensions, with the Strait of Hormuz remaining a focal point of geopolitical risk. Energy prices have surged, with Brent crude hitting $108.86, reflecting heightened concerns over supply disruptions. The Fed's potential rate hike decisions are also causing volatility, with traders closely watching for signals on monetary policy. Meanwhile, the AI sector faces mixed signals, with some analysts warning of vulnerabilities in the AI-driven equity rally amid rising debt and capital intensity. The broader market remains in a fragile state, with investors balancing the risks of geopolitical uncertainty and macroeconomic policy shifts.