Geopolitical risks dominate global markets

Three distinct geopolitical developments are shaping market conditions this week. Chinese-made Zbtlink routers contain a backdoor vulnerability, according to security researchers, raising questions about supply chain security in networking infrastructure. The discovery adds to growing concerns about foreign-made hardware in critical systems.

In the Red Sea, Yemen's Houthis claimed responsibility for attacking a Saudi oil tanker, disrupting maritime energy transport. The attack highlights ongoing risks to global oil shipping lanes through a key transit point connecting Europe and Asia.

The US government is refunding $100 billion in tariffs after the Supreme Court struck down the trade measures, according to a court filing. The massive refund represents a significant policy reversal that will affect trade flows and corporate balance sheets. The tariff reversal follows years of trade tensions that had reshaped supply chains across multiple sectors.