WS #13826

The Strait of Hormuz crisis narrative remains dominant but is showing signs of STABILIZATION rather than continued escalation. Iran's foreign minister has publicly floated a conditional de-escalation path, suggesting talks could resume if the US lifts the naval blockade, a notable softening from the previous hardline stance. This is corroborated by Reuters and Al Jazeera, marking a potential counter-signal to the prevailing bearish energy thesis. Oil prices have pulled back slightly from recent highs, with WTI easing to $80.90 and Brent to $86.50, as traders weigh the diplomatic overture. The Jones Act waiver extension remains in effect, supporting continued fuel flows. No new major developments have emerged in the AI or trade fronts, with the Nvidia financing deal and Canadian tariffs remaining as previously reported. Overall, the situation is de-escalating modestly, but the core supply disruption persists, keeping energy and shipping sectors under watch.