Recent weeks have been marked by escalating tensions in the Middle East, with recurring disruptions in the Strait of Hormuz putting energy markets on alert. The most visible impact has been on oil prices. Despite a correction of over 35 dollars in Brent crude earlier this week, the price per barrel remains near recent highs, reflecting persistent geopolitical risk in a route through which approximately 25% of the world's oil passes. The International Energy Agency has announced the release of 400 million barrels from strategic reserves to curb price hikes. Several governments are adopting similar approaches, either by reducing fuel taxes or tapping into their own reserves. While these measures may soften the short-term shock, they are unlikely to compensate for a prolonged supply disruption. In this context, energy and defence sectors continue to stand out in stock markets. Interestingly, global stock markets have shown resilience, with major US indices like the S&P 500 and Nasdaq remaining high, supported by the technology sector. However, oil prices remain a decisive factor. As major central banks, including the Federal Reserve, the ECB, and the Bank of England, prepare to meet, they are expected to maintain current interest rates, prioritising caution amidst high geopolitical uncertainty.