WS #13779

The dominant market theme remains the US-Iran/Hormuz standoff, which is ESCALATING. Iran's IRGC has firmly stated it will not reopen the Strait of Hormuz until the US meets a list of demands including war reparations, sanctions relief, and asset release. This has kept oil prices elevated, with Brent up 1.44% to $84.79 and WTI up 1.08% to $79.29. Unverified reports of Iran firing cruise missiles at an oil tanker off Oman, setting it ablaze, add to the risk premium. The US has not publicly responded to Iran's demands, and Trump is 'low-keying it,' suggesting a prolonged standoff. This supports bullish energy (XOM, CVX) and bearish airlines (DAL, UAL) and shipping. Gold is also benefiting from safe-haven demand and weak US jobs data, with prices above $4,300 and targets at $4,400. In corporate news, Apple is testing China's CXMT memory chips for iPhones and MacBooks to mitigate AI-driven component shortages, a potential supply-chain shift. SpaceX shares fell 9% after its first earnings report revealed massive AI spending, though Starlink's profitability and $1 trillion revenue projection from Musk are notable. The Senate passed a sweeping Russia sanctions bill, which could impact energy markets. Asian markets are mixed, with Japan and Korea rebounding but Australia dragged by Westpac's weak mortgage data.