WS #10612

Oil prices continue to slide, with WTI briefly dipping below $70, as the Strait of Hormuz crisis de-escalates. Energy Secretary Wright reported 72 ships carrying 20 million barrels of oil departed the strait in the past day, confirming the reopening. However, counter-signals are emerging: Iraq ordered production halts at the West Qurna 2 oil field, and Russia's Moscow refinery may stay offline until 2027 after Ukrainian drone strikes, while gasoline output is down 25% year-over-year. These supply constraints could offset some of the bearish crude pressure. Bitcoin broke below $60,000, now down over 50% from its all-time high, with institutional ETPs posting their first negative one-year flow in three years. Crypto-linked stocks like MSTR are under pressure. In AI, OpenAI and Broadcom unveiled 'Jalapeño', a custom inference chip, which is bullish for Broadcom and the custom silicon trade. Nvidia surged 5% in a single day. Cerebras reported strong revenue growth but fell on margin concerns, though analysts argue the report is quietly bullish for AI infrastructure demand. A federal judge permanently blocked Trump's proof-of-citizenship voting requirement. The dominant theme is oil de-escalation (STABLE) with counter-supply risks, and AI infrastructure buildout (ESCALATING) with custom silicon as a key beneficiary.