WS #16728

Geopolitical tensions in the Middle East have escalated sharply, with US strikes on Iranian targets driving Brent crude to $107. This supply shock is creating a bifurcated market: energy majors like Aramco are posting record profits due to soaring refining margins, while the broader macro environment faces inflationary pressure, evidenced by Swiss CPI coming in at 1.5% versus a 1.2% forecast. The conflict is also disrupting regional stability, forcing the rescheduling of the Asian Cup in Saudi Arabia and triggering Ukrainian drone strikes on Russian oil infrastructure, which further tightens global supply expectations. In corporate news, the M&A landscape is active with DoorDash agreeing to acquire Instacart for $17 billion, signaling consolidation in the digital delivery sector. Meanwhile, major tech players are reporting mixed results; Apple posted record revenue but warned on margins, and Palantir beat earnings as its commercial revenue base expands. Financials remain resilient, with Goldman Sachs reporting a 29% profit increase driven by trading and investment banking activity, likely benefiting from the heightened volatility and geopolitical uncertainty.