WS #14729
Stocks rallied sharply after reports emerged that the US and Iran are negotiating a phased deal to reopen the Strait of Hormuz, easing fears of a global energy supply shock. The Trump-Xi summit further supported this narrative, with Chinese leadership calling for renewed diplomatic engagement on Iran. This de-escalation has dampened the bearish thesis on consumer discretionary and airline stocks, though energy sector gains are being trimmed as the immediate crisis recedes.
Hormuz De-escalation Rally
Stocks rallied sharply after reports emerged that the US and Iran are negotiating a phased deal to reopen the Strait of Hormuz, easing fears of a global energy supply shock. The Trump-Xi summit further supported this narrative, with Chinese leadership calling for renewed diplomatic engagement on Iran. This de-escalation has dampened the bearish thesis on consumer discretionary and airline stocks, though energy sector gains are being trimmed as the immediate crisis recedes.