WS #16736

Geopolitical risk has escalated sharply as the US strikes Iran's Qeshm Island in the Strait of Hormuz, directly threatening global oil supply routes. Oil prices have spiked to $106, triggering a classic risk-off environment that is dragging down equities and pressuring the US dollar. Concurrently, the US has imposed strict new export controls on AI chips, ordering data center clients to reduce China exposure, which introduces a significant supply chain shock to the semiconductor sector. This dual pressure—energy inflation and tech decoupling—is driving a broad market selloff, with the Nasdaq and Asian indices falling sharply. In the corporate sphere, Apple's earnings revealed a stark margin compression due to soaring memory chip costs, capping its revenue beat and sparking a sell-off in megacap tech. This highlights a structural input-cost inflation theme that is weighing on hardware margins globally. Meanwhile, energy majors like Chevron are benefiting from the oil spike, posting massive upstream and downstream earnings growth. The market is currently bifurcating between energy beneficiaries and tech/importers facing margin or supply headwinds.