WS #15685

Geopolitical tensions in the Middle East are escalating, marked by Houthi attacks on Riyadh airport and threats to Saudi oil infrastructure, which has introduced significant volatility into energy markets. Concurrently, a contradictory signal has emerged with reports that the US is considering purchasing Russian diesel, a move that has triggered a sharp sell-off in Asian equities and pushed WTI crude prices down by approximately $1.50. This development complicates the energy outlook, as it suggests a potential easing of supply constraints despite the physical threats to infrastructure. In the technology sector, the narrative remains dominated by the tension between AI demand and capital constraints. Intel and Broadcom have warned that a capital crunch is the primary bottleneck for AI growth, dampening enthusiasm for high-capex plays. Meanwhile, Goldman Sachs has upgraded global stocks on the back of strong earnings, providing a bullish counter-narrative to the geopolitical risks. In crypto markets, Bitcoin is hovering near the $82,000 level, with traders pricing in mixed signals from inflation data and Ethereum upgrade discussions.