WS #14660

Geopolitical tensions in the Middle East continue to escalate, with US-Iran rhetoric intensifying at the UN and Ukrainian strikes reportedly disabling 45% of Russian refining capacity. This environment has kept Brent Crude elevated near $103, though the immediate price spike from the Hormuz attack has stabilized as markets digest the supply disruption. Concurrently, the US 10-Year Treasury yield hit a 19-year high of 5.13%, signaling persistent inflation fears and fiscal dominance concerns that are pressuring rate-sensitive sectors like real estate and growth tech. In corporate news, the narrative is shifting from broad macro fears to specific sectoral winners and losers. Fastly (FSLY) surged 13% on strong investor day metrics, highlighting the continued demand for AI infrastructure and cloud security. Conversely, Intuit faces structural headwinds as AI DIY tools cannibalize its user base, and Rivian deals with a significant recall. The energy sector remains bifurcated: BP was upgraded by J.P. Morgan on valuation grounds, while the broader oil complex remains supported by the geopolitical risk premium.