GOLDMAN: MIDDLE EAST ESCALATION IS TOP MARKET RISK Goldman Sachs warned that renewed conflict in the Middle East or a prolonged Strait of Hormuz shutdown is the “most obvious downside threat” for markets. Analyst Dominic Wilson said easing geopolitical fears have driven a strong equity and AI-led rally, but warned the downside tail risk is still underpriced. The bank also cautioned on stretched AI valuations and pushed back expectations for rate cuts through 2026, despite current market optimism.(*Walter Bloomberg)