WS #12757

The dominant theme in this window is the escalating energy supply crisis in the Strait of Hormuz, with an oil tanker explosion after hitting a naval mine, reported by multiple sources including Iranian media and international outlets. This event, combined with ongoing Houthi attacks on Saudi oil infrastructure and Ukrainian drone strikes on Russian oil facilities (including the Sheskharis port suspension), is pushing oil prices higher. Brent crude has topped $100 per barrel, and gasoline prices in Europe are surging (e.g., Milan at €2.6/liter). The US has paused strikes on Iran to allow diplomacy, but the situation remains highly volatile. Separately, the AI trade is under pressure: Alphabet's massive capex increase spooked markets, and Intel's stock dropped 7.89% after a poor week. However, Apple's disciplined AI spending is being rewarded, and GE Aerospace announced a record engine deal with IndiGo. Shein's Hong Kong IPO filing revealed a Q1 net loss of $99 million due to US tariff impacts. The German Interior Minister confirmed a Berlin Pride attack as Islamist terrorism, adding geopolitical uncertainty. Overall, the market is facing a stagflationary shock from oil supply disruptions, while tech earnings season is creating divergence among mega-caps.