WS #16734

The geopolitical crisis in the Middle East has escalated from targeted strikes to a broader regional conflict, with Iran launching a missile attack on a US fighter jet and issuing civil defense protocols for nuclear scenarios. This escalation has driven Brent crude to $107, reinforcing the bearish thesis for energy-intensive sectors like airlines and consumer discretionary, while energy producers (XOM, CVX) and refiners (MPC, VLO) continue to benefit. The narrative has shifted from a localized supply disruption to a systemic risk event, dampening any hopes for a quick de-escalation.