April brought a sharp and broad-based rally across equity markets, particularly in the US and in the technology sector. After the initial shock of March, investors appeared to take the Persian Gulf conflict in their stride, concluding that higher oil prices would not derail global growth

It has now been several weeks since what is now being called the Third Gulf War plunged markets into deep uncertainty. The central issue is the near-complete blockade of the Strait of Hormuz.

Recent developments, particularly in the Middle East, have significantly altered the market environment in just a few days, pushing into the background dynamics that were still central to our previous letter.