WS #16746

Geopolitical tensions in the Middle East are escalating, marked by U.S. strikes on Iranian targets in the Strait of Hormuz and reports of U.S. advising Gulf nations to prepare for swift military operations. This escalation has triggered a significant flight to safety, with central banks purchasing 321 tonnes of gold in Q3 2026—the strongest quarterly total since Q4 2024—and gold-backed ETFs returning to positive inflows. Concurrently, Aramco reported rising profits due to strengthened refining margins, highlighting the immediate financial impact of the conflict on energy incumbents. In equity markets, macro headwinds are intensifying, with South Korean equities suffering a historic retreat, erasing approximately 130 trillion won in market value. In the U.S., Apple shares fell 4.5% in premarket trading despite beating Q4 revenue estimates, as investors reacted negatively to weak gross margin guidance and slowing services growth. Meanwhile, the crypto sector faces regulatory and security challenges, with Binance denying a $6.3 billion hack attributed to North Korea, calling the FBI's findings a 'political provocation' amid reports of deposit withdrawals exceeding hourly inflows.