WS #16086
Houthi attacks on Saudi cities have reignited fears of a Strait of Hormuz blockade, threatening global oil supply routes. However, this bearish macro signal is being actively countered by President Trump's waiver of key Russian Graham Act sanctions, which has lowered oil prices and triggered a rebound in US equity futures. The market is pricing in a dampened supply shock due to this policy intervention, resulting in a volatile but contained energy sector response.
Geopolitical Risk and Energy
Houthi attacks on Saudi cities have reignited fears of a Strait of Hormuz blockade, threatening global oil supply routes. However, this bearish macro signal is being actively countered by President Trump's waiver of key Russian Graham Act sanctions, which has lowered oil prices and triggered a rebound in US equity futures. The market is pricing in a dampened supply shock due to this policy intervention, resulting in a volatile but contained energy sector response.