WS #16399

Geopolitical tensions in the Middle East are escalating rapidly, with reports of Houthi attacks on Saudi infrastructure and a potential US retaliatory strike on Iran. Brent crude has hit a five-month high, creating a divergence between physical crude prices and futures. Concurrently, a ceasefire in Oleshky, Ukraine, mediated by the First Lady, has been agreed upon, though this is overshadowed by the broader regional instability. The US has authorized an emergency release of 400,000 barrels from the Strategic Petroleum Reserve to mitigate supply shocks. In the technology sector, sentiment is mixed. While Texas Instruments is upgraded on data center monetization, bearish options flow is accumulating in the SMH ETF ahead of the FOMC decision, with traders betting on a 4.3% drawdown. This suggests institutional caution despite the broader tech rally. In corporate news, CRH completed its $8.5 billion acquisition of Arcosa, signaling continued consolidation in the infrastructure sector, while Rolls-Royce nears a subsidy deal for new jet engine development, supporting the aerospace supply chain.