WS #15122

The geopolitical landscape is defined by a sharp escalation in Middle East tensions, corroborated by reports of an attempted disruption on a Flydubai flight and ongoing US-Iran diplomatic maneuvering regarding the Strait of Hormuz. This escalation is driving a flight-to-safety dynamic in energy markets, with Brent crude notably low at $25 and gas at 99 cents, suggesting a complex interplay between supply fears and demand destruction or market manipulation. Concurrently, the US military has completed its withdrawal from Iraq, marking the end of a 12-year mission, which may reduce immediate kinetic risks but leaves a strategic vacuum.