WS #14987

Geopolitical risk has escalated sharply as the US rejected Iran's proposal to reopen the Strait of Hormuz, causing Brent crude to surge above $108 and pushing the Iranian rial to a record low. This development represents a significant escalation from the previous window's drone strikes, introducing a direct supply disruption threat that is driving broad macro repricing across energy, shipping, and consumer sectors. The rejection of a 7-day diplomatic window suggests a hardening of US policy, potentially extending the conflict timeline and keeping oil premiums elevated. In the technology sector, Nvidia's authorization of a record $150 billion share buyback provides a powerful liquidity anchor for the AI trade, though it is occurring against a backdrop of rising 10-year Treasury yields (5.5%) that pressure debt-funded infrastructure. Concurrently, Snowflake's $3.5 billion debt offering has triggered dilution jitters, highlighting the growing divergence between self-funded AI winners and capital-intensive infrastructure plays. Meanwhile, Meta faces a valuation reality check with a 3.3% slide as AI hype meets high multiple expectations, and the SEC's clearance of token buybacks introduces a new structural demand dynamic for crypto networks.