WS #13403

The dominant narrative is the US-Iran de-escalation and reopening of the Strait of Hormuz, which is ESCALATING in terms of diplomatic progress. Multiple sources (AP, Guardian, Al Jazeera, Reuters, NYT, Bloomberg) corroborate that Iran and Oman are close to a deal to reopen the strait, with Bessent saying a deal could come today or tomorrow. This has driven oil prices down sharply (Brent below $79, WTI down ~6%), boosting equities (S&P 500 and Dow at record highs) and airlines, while pressuring energy stocks. However, there are counter-signals: Trump has issued an ultimatum threatening massive bombing if no deal by today/tomorrow, and a tanker was struck in the strait, indicating ongoing risk. The market is pricing in a deal, but the situation remains fluid with potential for escalation. Separately, strong AI-related earnings (Palantir, Caterpillar) are driving the tech rally, with Palantir up 27% on 'otherworldly' demand. Novo Nordisk raised its full-year outlook, a positive for the pharma sector. A major crypto hack ($130M from Coldcard wallets) is pressuring Bitcoin, which is trading around $64k. The Anthropic-Bitdeer $10B compute deal highlights AI infrastructure demand, benefiting BTDR and related names.