WS #16051

The geopolitical crisis in the Middle East has escalated sharply, with Iranian attacks on the Strait of Hormuz driving Brent crude past $110/bbl for the first time since May. This supply shock is compounding a severe tech selloff, as rising Treasury yields and AI valuation concerns push the Nasdaq to its worst week since April 2025. The dual pressure is creating a broad-based risk-off environment, with the VIX surging above 22 and institutional flows indicating heavy hedging in QQQ and MSFT. Within the tech sector, the narrative is bifurcating. While the macro headwinds are overwhelming, specific catalysts are emerging. Nvidia faces a significant headwind from OpenAI's revenue miss, but the German government's new cooperation plan with Nvidia provides a counter-signal of state-backed support. Meanwhile, Tesla's Roadster unveiling generated massive cultural engagement but failed to translate into immediate price support, as shares remain down 3% amid the broader market weakness. Salesforce has seen a price target raise from Mizuho, highlighting that AI infrastructure plays are still finding pockets of bullishness despite the sector-wide drag.