WS #16046

Global markets are undergoing a severe risk-off rotation driven by a dual shock of escalating Middle East tensions and a resurgence of inflationary pressure. Oil prices have surged above $100 per barrel following an ultimatum from Iran to close the Strait of Hormuz unless US forces withdraw, creating a direct supply crisis narrative. This geopolitical escalation is compounding a domestic inflation shock, as US September PPI data came in significantly hotter than expected (6.3% YoY), effectively neutralizing any near-term rate cut expectations and forcing a repricing of growth assets.