Global equities surged and oil prices dropped following a diplomatic agreement to reopen the Strait of Hormuz. This deal removes a major bottleneck for energy shipments, easing investor fears over supply shocks. Markets reacted quickly to the news, sparking a broad rally across international stock indices as geopolitical risk premiums faded.

Meanwhile, hedge funds are taking aggressive short positions against the debt and equity of several European carmakers. These bets stem from growing fears that Chinese competition will erode market share and margins for traditional auto giants. Traders are pricing in a structural decline for these manufacturers as they struggle to compete with cheaper imports.

Security concerns also hit the UK, where a Russian online sabotage network orchestrated arson attacks on the family home of Prime Minister Keir Starmer. These attacks target properties linked to the leader, signaling a shift in Russian tactics toward direct sabotage. This escalation adds a layer of political instability to the current global environment.