WS #13558

The dominant theme remains the Strait of Hormuz conflict, which is ESCALATING. Iran's parliament is considering a draft law to ban US and Israeli ships from the strait and impose fines up to 20% of cargo value, per Fars news agency. This has driven Brent crude up over 3% to ~$82.5 and WTI to ~$77.3, with US 10-year yields rising 5.3bp to 4.67% as bonds sold off. The US has pushed back, stating the strait is international waters with no tolls or permissions. Houthi attacks on Saudi tankers in the Red Sea and Gulf of Aden add to supply concerns. This is a high-significance escalation with direct implications for energy equities (XOM, CVX, PSX), airlines (DAL, UAL), and broader risk sentiment. Separately, SpaceX shares rose 2.5% to $110.92 despite a $101 billion lockup expiry, with Morgan Stanley calling it a 'generational compounder' and a $300 price target; this counters the bearish lockup narrative. In earnings, Warner Music beat EPS but missed revenue, and Honeywell Aerospace fell 21.2% on weak results. The Trade Desk guided Q3 revenue below estimates, while Akamai beat. The FCC lifted the 39% TV ownership cap, boosting broadcasters like SSP and SBGI. McConnell's discharge from rehab is political noise with no direct market impact.