WS #13808

The dominant theme remains the Strait of Hormuz closure, which is ESCALATING. Iran's Foreign Ministry reiterated that the strait will not reopen until the US naval blockade ends and other conditions are met, while Trump has rejected Iran's compensation demands and instead seeks reparations from Iran. This hardening of positions, corroborated by multiple sources (Al Jazeera, Reuters, GDELT, Bloomberg), has pushed Brent crude to ~$86.5 and WTI above $80, with energy stocks (XOM, CVX) rallying and oil tanker rates soaring to nearly $500,000/day. The US extended the Jones Act waiver with limitations, a counter-signal that partially offsets supply chain disruptions. Separately, Nvidia is reportedly working with Goldman Sachs, Blackstone, and others on a $500B AI financing deal, but NVDA shares fell 3.2% on dilution concerns, contradicting the broader AI optimism. Apple was downgraded by Jefferies (Underperform, PT $263.66), pressuring AAPL. Meta released its Glimmer AI model for local download, signaling a shift in AI competitive dynamics. The Colombia earthquake death toll has risen to 69, but market impact remains limited to insurance claims. Fed rate hike expectations for September have fallen to ~42% after weak jobs data, with CPI due Wednesday.