Goldman Sachs analyst Rich Privorotsky and Nomura strategist Charlie McElligott both point out that oil prices, not the AI narrative, are the dominant factor in the current market. They believe that oil prices dictate the bond market, which in turn dictates risk assets. The escalation of conflict between Saudi Arabia and Houthi rebels led to higher oil prices overnight, pushing long-end U.S. Treasury yields above 5% and continuously setting new highs. Goldman Sachs estimates that the impact on Persian Gulf oil flows has reached 6.7 million barrels per day, exacerbating the global energy supply deficit. Both analysts believe that a diplomatic breakthrough is the only credible way out of the current situation and are focusing on a potential meeting between the leaders of the world's two largest economies next week, as well as a U.S. energy export ban, as key turning points.