Morning Brief: Houthis Strike Deep Saudi Energy Assets, Brent Nears $100; Dow Drops Over 600 Points

【Key Snapshot】

· ⚠️ The Houthis announced broad military operations deep inside Saudi territory. An Iranian oil tanker was hit by US missile strikes, pushing Brent crude toward the $100 psychological threshold.

· 📉 All three major US equity benchmarks closed lower. Dow Jones fell 1.18% to 52786.07, S&P 500 lost 0.58%, Nasdaq dropped 0.32%.

· 🇯🇵 BOJ plans a 25bp rate hike next week, with a potential acceleration to quarterly tightening.

【I. Market Outlook】

Core Events:

‑ Houthis target deep Saudi energy infrastructure: Houthi spokesmen stated they will announce wide-ranging military operations deep within Saudi Arabia, warning no place in the kingdom is safe. Oil-producing zones, industrial sites and critical installations are now vulnerable. The US Treasury rolled out fresh sanctions targeting Iran, covering 36 entities and focusing on Iran’s aviation sector. → Front-month Brent crude +2.46% at $99.39 per barrel, nearing $100; front-month WTI crude +1.67% at $94.25 per barrel.

Exclusive View:

US equities fell across the board with the Dow shedding more than 600 points. Markets are pricing the dual blow of surging energy costs on inflation and economic growth. The BOJ intends to raise rates by 25 basis points next week and may shift to quarterly hikes. Amid synchronized global central bank tightening, risk assets face heavier pressure.

【II. Overnight Market Performance】

‑ US Equities: Dow Jones -1.18% at 52786.07; S&P 500 -0.58% at 7673.52; Nasdaq -0.32% at 26421.41. Intel jumped over 9% after announcing a 10% price hike on PC CPUs. Optical communication stocks rallied: Lumentum +11%, Corning +7%. Nvidia fell more than 2%, Apple lost over 1%.

‑ European Equities: Major European indices closed mixed. Germany DAX flat at 26007.63, France CAC40 +0.14%, UK FTSE 100 -0.1%.

‑ Fixed Income: US 10-year Treasury yield around 4.79%, up 1bp intraday; 2-year yield near 4.39%, up 2bp intraday.

‑ Commodities: Front-month Brent crude +2.46% at $99.39/bbl; front-month WTI crude +1.67% at $94.25/bbl. COMEX gold futures -1.17% at $4400.00/oz.

‑ FX: US Dollar Index edged down 0.05% to 98.87.

‑ Crypto: Bitcoin -0.52% at $78514; Ethereum at $2482.

【III. Macro News】

1. ⚠️ Houthis strike deep Saudi energy sites, Brent nears $100. Houthi spokesman Yahya Saree said the group will launch extensive military action deep inside Saudi Arabia, putting oil fields, industrial plants and key infrastructure at risk. Separately, an Iranian oil tanker was struck by US missiles 4 miles off Kharg Island. Iran’s Revolutionary Guard warned crew members on tankers at Kuwaiti and Bahraini ports to evacuate immediately. Front-month Brent crude rose 2.46% to $99.39/bbl.

Insight: By expanding attacks from Red Sea shipping lanes to inland Saudi energy facilities, the Houthis mark a major escalation in Middle East tensions, directly threatening production capacity of the world’s top oil exporter. Brent’s move toward $100 reflects this severe supply-side geopolitical risk.

2. 🏛️ BOJ to hike 25bp next week, quarterly tightening on the table. Japan’s July nominal wage growth hit the highest reading since 1997, backing the case for policy tightening. The yen has strengthened recently, with USD/JPY near 154.

3. 💾 Intel raises PC CPU prices by 10% and plans to phase out low-margin products. Intel jumped more than 9% after hours. Traditional CPU makers are boosting profitability via price hikes and product portfolio optimization amid surging AI chip demand.

【IV. Corporate News】

1. 💾 Intel raises PC CPU prices by 10% and plans to discontinue low-margin products. Shares surged more than 9% after market close.

2. 🤖 OpenAI launches ChatGPT Images 2.5 with generation speed boosted by up to 50%.

3. 💾 Apple signs unusual 3–5 year NAND flash long-term supply deal with no price cap.

【V. Key Events To Watch】

· 📋 The US Treasury’s expanded long-dated Treasury buyback program takes effect Sep 9. Markets watch whether buybacks can cap rising long-end yields.

· 🗣️ The Republican Party’s first midterm convention kicks off in Dallas; Trump is set to deliver the keynote address.