WS #16340
Iran has threatened to strike oil and AI facilities across the Gulf if US and Israel renew attacks, causing Brent crude to spike to $111.71 and triggering a broad risk-off environment. This escalation has driven investors into safe-haven bonds, pushing the US10Y yield below 5% for the first time in a month. The market is pricing in a significant supply risk premium, with energy stocks benefiting while airlines and shipping face headwinds.
Middle East Escalation & Oil Shock
Iran has threatened to strike oil and AI facilities across the Gulf if US and Israel renew attacks, causing Brent crude to spike to $111.71 and triggering a broad risk-off environment. This escalation has driven investors into safe-haven bonds, pushing the US10Y yield below 5% for the first time in a month. The market is pricing in a significant supply risk premium, with energy stocks benefiting while airlines and shipping face headwinds.