WS #13973

The Strait of Hormuz standoff remains the dominant market driver, with the US and Iran trading opposing claims over control. The US Navy has now redirected 59 commercial vessels (up from 55) as part of its 'steel wall' blockade, while Iran's PGSA insists the waterway remains blocked until its conditions are met. This is corroborated by multiple sources (Gulf News, Al Jazeera, GDELT, CNBC). Oil prices are rising for a fifth consecutive day, with WTI up ~11% over that period and Brent near $89, as the IEA projects a deepening supply deficit of 1.8 mb/d in Q3 2026 (more than double last month's estimate) and global inventories falling below 7.9 billion barrels for the first time since April 2025. However, demand-side weakness persists: OPEC cut its 2026 demand growth forecast to 600k bpd (from 800k), and the IEA sees a 1.6 mb/d contraction in 2026. US crude inventories posted a massive +17.4M barrel build, the largest since January 2023. This mixed picture keeps energy complex bid (XOM, CVX) while airlines (DAL, UAL) and shipping (MATX, ZIM) face headwinds. The US CPI for July came in at 3.4% (core 2.5%), in line with forecasts, easing rate-hike fears and boosting tech stocks; the Nasdaq rose 0.54% and Asian markets rallied, with the Kospi surging 4.8% on AI-driven chip demand. Gold advanced to a two-month high near $4,450/oz on softer inflation and safe-haven demand. In corporate news, Intel's CEO invested $12 million of his own money in the company's $20 billion raise, signaling confidence in its AI turnaround. Anthropic is in talks to buy AI startup Decart for ~$6 billion, highlighting continued AI M&A activity. Nvidia's $500 billion AI infrastructure financing plan with Wall Street firms (Apollo, BlackRock, Blackstone, Brookfield, Goldman, KKR) is drawing skepticism, with analysts questioning whether it reflects genuine demand or a move to prop up sales. The Pentagon is racing to buy 10x more missile interceptors (PAC-3, THAAD) as the Iran war drains stockpiles, a bullish signal for defense contractors (RTX, LMT).