WS #7533

The dominant narrative remains the escalating Middle East crisis, centered on the drone strike at the Barakah nuclear plant in the UAE. The IAEA has confirmed radiation levels are normal and no injuries were reported, which acts as a counter-signal to the initial panic. However, the Strait of Hormuz remains a critical concern, with the Eurogroup head stating its reopening is of 'utmost importance' ahead of G7 meetings. Bond yields are spiking (30-year above 5%), and investors warn equities are vulnerable to inflation from high energy prices. Separately, a major Ukrainian drone strike on Moscow (over 1,000 drones) killed at least four, marking an escalation in the Russia-Ukraine conflict. The WHO declared the Ebola outbreak in DRC and Uganda a global emergency, a potential risk to travel and commodity sectors. A report indicates a multi-billion dollar Nvidia chip deal with China has been suspended due to US conditions, directly impacting NVDA. The situation in the Middle East is ESCALATING, while the Ukraine-Russia drone war is also ESCALATING.