WS #14088

The US-Iran/Hormuz crisis remains the dominant market driver, with the narrative firmly in ESCALATION mode. Multiple sources corroborate fresh attacks: Yemeni Houthi missile strikes destroyed two Saudi logistics ships at Mokha port and struck a Saudi Aramco refinery in Jazan, while the UAE formally accused Iran of drone attacks on two ADNOC tankers in the Strait of Hormuz. US Treasury Secretary Bessent reiterated threats of unprecedented economic isolation of Iran, and the euro strengthened to near $1.16 on safe-haven flows. Oil prices continue to climb, with WTI around $82 and Brent near $88, reinforcing bullish energy (XOM, CVX, MPC) and bearish airlines (DAL, UAL) and shipping (MATX). Hormuz traffic remains severely depressed at 13 crossings/day versus pre-war 100-140, though a 44% one-day spike suggests some resilience. Marine insurers have cancelled war cover in the wider Red Sea zone, adding to shipping cost pressures. No de-escalation signals emerged; the crisis is intensifying.