WS #15372

Geopolitical tensions in the Middle East are escalating, marked by Iran's internal parliamentary revolt against Foreign Minister Araghchi's unauthorized US contacts and US Secretary of State Marco Rubio issuing direct warnings of military and economic threats. This follows Goldman Sachs' assessment that Strait of Hormuz flows will not normalize until late 2027, creating a persistent structural risk premium for energy and shipping. Concurrently, Russia is conducting a major nuclear accident drill at the Beloyarsk plant, signaling heightened readiness in the energy infrastructure sector amid broader regional instability. In the technology and energy nexus, Google and Constellation Energy have announced a massive 890 MW nuclear power deal, reinforcing the thesis that AI-driven power demand is driving a structural shift toward baseload nuclear generation. This is corroborated by NuScale Power's upcoming earnings and broader market interest in Small Modular Reactors (SMRs). Meanwhile, Meta faces a UK regulatory probe over Instagram Instants safety, adding a regulatory overhang to the sector despite broader market strength. Corporate earnings and macro data show mixed signals. RPM International reported a Q1 EPS beat ($1.98 vs $1.95 estimate) but missed revenue slightly, reflecting stable industrial demand. Hyperscale Data (GPUS) disclosed a $56.4 million Bitcoin and cash holding, highlighting the continued corporate adoption of crypto as a treasury asset. On the macro front, the Euro hit a 17-month low on French fiscal concerns, while UK GDP data remains in focus. The market is currently balancing geopolitical risk-off sentiment with strong tech/AI infrastructure momentum.