WS #15275

Geopolitical tensions in the Middle East are escalating sharply, with Saudi Arabia launching a major ground offensive in Yemen involving over 100,000 troops to reclaim territory from the Houthis. This is accompanied by active Houthi missile fire intercepted over Saudi Arabia and increased Israeli aviation activity over Lebanon. The market is pricing in a significant supply risk premium, with WTI crude oil closing above $90 and OPEC+ delaying its capacity review due to the disruption. In a direct counter-signal to the supply shock, the G7 has agreed to release 100 million barrels of strategic reserves, dampening the immediate bearish impact on global indices but failing to fully offset the geopolitical risk premium on energy. In the technology sector, Nvidia continues its dominant run, breaking all-time highs as CEO Jensen Huang's personal wealth surpasses $200 billion. However, the narrative is complicated by a US arrest of a tech CEO accused of smuggling $300 million in Nvidia chips into China, highlighting intensifying export control enforcement. Meanwhile, Dell is surging on a $15 billion AI data center investment plan in Japan, and Webull is rising following a strategic partnership with X. The broader tech sector remains resilient, with the Nasdaq 100 hitting record highs despite weak US jobs data that has reduced the odds of a rate hike to 20%. European social unrest is emerging as a secondary risk factor, with France experiencing nationwide riots involving migrant students, resulting in nearly 3,000 arrests and widespread school closures. This adds a layer of political instability to the European outlook. In the energy transition space, LNG Canada received final approval for a $23 billion export facility expansion, signaling continued capital commitment to LNG despite the volatile geopolitical backdrop.