WS #16727

Geopolitical tensions have escalated sharply with US strikes on Iran's Qeshm Island and targets in the Strait of Hormuz, triggering a sharp repricing in energy markets. Brent crude surged $2.39 to $107.16/bbl following the strikes, though diplomatic signals from Tehran—offering to unlock Hormuz in 48 hours—and Russia's drone downing efforts introduce volatility. The narrative is shifting from pure escalation toward a potential ceasefire phase inversion, dampening immediate bearish index impacts but sustaining energy sector strength. In corporate news, Apple reported record $114.5B revenue but saw its stock decline as Wall Street focused on rising component costs and weak China demand, contrasting with strong AI hardware adoption. Meanwhile, Marvell's massive $115B acquisition of Lumentum signals aggressive consolidation in the semiconductor supply chain, supporting the ongoing bullish thesis for custom silicon and data center infrastructure. Palantir's earnings beat further validates the AI software demand cycle. Macro developments include the RBA's rate hike to an 18-year high, reinforcing global tightening trends, while European industrial weakness persists with Schaeffler cutting jobs. Gold prices eased slightly ahead of US midterms, reflecting profit-taking after recent rallies, though geopolitical risk premiums remain embedded.