Macro Split: Cool US CPI Meets Middle East Oil Shock

Markets are grappling with a heavy dose of macroeconomic and geopolitical tension as escalating conflict in the Middle East has closed the Strait of Hormuz, pushing crude oil prices past $80 and threatening a renewed wave of inflation [1][2][3]. This geopolitical shock has triggered broad equity sell-offs and rising treasury yields [1], forcing investors to reassess risk asset exposure across the board. The tech sector, which has been highly concentrated in mega-cap AI leaders, bore the brunt of the initial rotation [1][4][5]. On the economic front, June inflation data has delivered a major surprise. US headline CPI fell…