WS #5760

Geopolitical tensions in the Middle East are escalating, with multiple sources reporting Israeli airstrikes on southern Lebanon killing three, and Iran seizing commercial vessels in the Strait of Hormuz, pushing Brent crude above $103. This threatens the fragile US-Iran ceasefire and could disrupt global oil supply. Meanwhile, the IEA chief warns that 13 million barrels per day of supply are gone, marking the biggest energy security threat in history. In corporate news, Skillz shares surged over 35% after winning a $420 million judgment against Papaya Gaming, while Avis Budget and Hertz continue to slide amid short-seller activity. Tesla's Q1 earnings beat estimates, with strong cash flow and a narrative shift toward AI/robotics, supported by Cantor Fitzgerald maintaining a $510 price target. Texas Instruments rallied after a Q1 beat on strong industrial and data center demand, with TD Cowen raising its price target to $300. Union Pacific also delivered an earnings beat. On the macro front, mortgage rates fell for the third straight week, and the market is repricing DeFi credit risk after the Kelp DAO exploit. The DOJ watchdog is reviewing compliance with Epstein file release mandates, and the Navy secretary has been ousted amid tensions with Defense Secretary Hegseth.