WS #16295

The geopolitical crisis in the Middle East has escalated significantly, with the Strait of Hormuz now facing active kinetic threats. Iran's IRGC confirmed strikes on four vessels conducting ship-to-ship transfers and the deployment of mines west of the strait, directly targeting the 20% of global oil supply that transits the region. This development marks a transition from rhetorical threats to physical supply disruption, driving Brent crude past $110 and triggering a broad risk-off sentiment across global equities. In the corporate sector, IBM delivered a strong Q3 beat, lifting shares nearly 4% and providing a rare bright spot in an otherwise defensive market environment. Meanwhile, the financial sector faces headwinds from the Norway Wealth Fund's admission of being underweight equities and cautious on big tech, signaling institutional risk aversion. The persistent geopolitical risk is also pressuring airlines and shipping logistics, while energy refiners and producers are benefiting from the supply shock.