WS #16310

The geopolitical crisis in the Middle East has escalated sharply, with oil prices surging to a five-month high of $112/barrel following attacks on Saudi oil infrastructure and Iranian strikes on tankers in the Strait of Hormuz. This supply shock is driving a clear divergence in equity markets: energy majors (XOM, CVX) are benefiting from higher realized prices, while airlines (DAL, UAL, AAL) and shipping (MATX) face margin compression from soaring fuel costs. The US administration's decision to release a third of its northeastern emergency diesel reserves acts as a partial dampener on the supply crisis, though it does not fully offset the geopolitical risk premium. In corporate news, Procter & Gamble reported a strong Q1 beat, demonstrating consumer resilience despite the macro headwinds, while Meta announced a 2-for-1 stock split to retain leadership in California. On the tech front, NVIDIA's ecosystem remains supported by strong demand signals from partners like QumulusAI, which secured $123.6M in financing for Blackwell GPUs, countering broader market volatility. Meanwhile, geopolitical tensions are spilling into European domestic politics, with French bond markets under pressure as President Macron condemns foreign interference amid ongoing protests.