WS #14060

The Middle East conflict remains in an ESCALATING phase with the Strait of Hormuz closure persisting. Two ADNOC tankers were attacked in the strait, with the UAE blaming Iran, and the Houthis claimed a drone strike on Saudi Aramco's Jazan refinery. US Treasury Secretary Bessent warned of unprecedented economic sanctions against Iran, while Vice President Vance stated that keeping oil and gas prices low is the war's 'goal number one.' These developments are corroborated across multiple sources (NBC, Bloomberg, AP, Reuters, and regional outlets), reinforcing the bullish case for energy and bearish for airlines/shipping. Oil prices are rising, with Brent around $88.5 and WTI up 1.2% to $82.25, heading for a 6% weekly gain. Treasury yields rose on the indefinite blockade threat, with the 10-year at 4.66%. In corporate news, Sandisk's bullish outlook on memory prices (mid-to-high-teens revenue growth, ~80% gross margins) is driving a rally in memory names like Micron (MU), while Applied Materials (AMAT) dropped 5.6% premarket despite record earnings as investors wanted faster growth. Reddit (RDDT) surged ~12% on S&P 500 inclusion, replacing AvalonBay. Workday (WDAY) continues to rally on Silver Lake acquisition talks, up 18% yesterday. Apple is reportedly training its own AI model for China with Alibaba's support, a significant strategic shift. The AI capex theme remains strong, with Nvidia's $500B financing initiative and Microsoft's own AI chip plans for 2027. Bitcoin is under pressure, slipping below $63,000, with ETF outflows and regulatory headwinds (SEC delays, MSCI proposal to exclude non-operating companies like Strategy).