Geopolitical tensions escalated through drone warfare, as Ukrainian strikes hit a Turkish-operated cargo ship near Novorossiysk and an Iranian vessel in the Caspian, the latter nearly triggering Iranian retaliation. Consequently, the Department of War is expanding its counter-drone marketplace, while firms like Anduril ramp up domestic production of unmanned naval vessels. Domestically, the Pentagon faces heightened scrutiny following a Senate report on persistent failures in privatized military housing, while the White House continues to push for AI safety measures with major tech firms. Meanwhile, South Korea’s President Lee Jae Myung confronts a precarious political climate as a massive drawdown in the Kospi—fueled by retail exposure to leveraged derivatives—erodes public approval. Markets navigated these risks alongside record-high volume in prediction platforms and ongoing pressure from the Trump administration on oil majors regarding fuel prices.