WS #15991

Geopolitical tensions in the Middle East are escalating sharply, with Iran attacking six tankers in the Strait of Hormuz and Ukraine striking the Ryazan oil refinery, pushing oil flows to record lows. This supply shock is driving a divergence in energy and transport sectors, lifting oil majors while punishing airlines and shipping. Concurrently, the UK CMA has proposed designating Microsoft with Strategic Market Status, intensifying regulatory pressure on Big Tech's business software dominance. In the technology sector, CoreWeave shares are falling on debt concerns, signaling stress in the AI infrastructure financing model, while Tesla's unveiling of a flying Roadster concept has generated significant retail and social media attention. Inflation data remains sticky, with US producer prices rising 6.3% annually, complicating the Federal Reserve's path and keeping rate-cut expectations in check.