WS #13744

The dominant theme remains the US-Iran/Strait of Hormuz conflict, which is ESCALATING. Iran's Supreme National Security Council has laid out maximalist conditions for reopening the Strait, including lifting the naval blockade, ending sanctions, withdrawing US forces, paying war reparations, and releasing frozen assets. This directly contradicts US expectations of a quick Oman-mediated deal, with Trump saying the US is 'low keying it' and expecting a resolution. The Houthis have escalated by striking Saudi Aramco's Jazan refinery and killing 11 in an attack on Mokha port, while Saudi Arabia, Pakistan, and Turkey signed a collective defense pact. These developments sustain upward pressure on oil prices and inflation, benefiting energy stocks (XOM, CVX) and hurting airlines (DAL, UAL) and shipping (MATX, ZIM). A counter-signal is the US expectation of a deal soon, which could ease oil prices if realized, but Iran's demands make that unlikely in the near term. Separately, Apple's testing of CXMT memory chips is corroborated by multiple sources (WSJ, Reuters, NTV), signaling a shift in the memory supply chain that could pressure Micron (MU) and Samsung, while benefiting Apple (AAPL) by easing cost pressures. The US Senate advancing the Clarity Act for crypto is a positive for crypto-related stocks (COIN, MSTR).