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Houthi forces in Yemen are claiming drone and missile strikes on two Saudi Arabian oil tankers in the Red Sea, alleging the vessels violated their maritime blockade. This escalation comes as regional tensions with Iran continue to widen, and traders will be watching crude closely — any sustained disruption to Red Sea shipping lanes tightens global supply in a hurry.
Shifting to tech, Google parent Alphabet is pushing back hard on the narrative that AI is eating its core business. CEO Sundar Pichai confirmed search queries are actually growing thanks to AI-powered tools, with search revenue up seventeen percent. That's a meaningful data point — it suggests the integration of generative AI into search is expanding user engagement rather than cannibalizing it.
And keeping our eye on semiconductors, AMD continues to build momentum in the data center space, chipping away at Nvidia's dominance with strong market share gains. Meanwhile STMicroelectronics swung to a second quarter profit after posting a loss in the same period last year, offering another signal that the broader chip sector is finding its footing after a difficult stretch.
That's the tape. Markets Desk, signing off the floor.
