WS #5890

Consumer sentiment in the US hit an all-time low of 49.8 in April, driven by higher gas prices and inflation concerns, according to the University of Michigan survey. This is a direct consequence of the Iran war and rising energy costs, corroborating previous signals of economic strain. Separately, the US unveiled new sanctions targeting Iran's shadow fleet, escalating the conflict and potentially tightening oil supply further. Russia is indirectly benefiting from the US-Israel war against Iran, with Russian oil prices at 13-year highs, which could offset some supply losses but also adds to global inflationary pressures. Intel (INTC) hit a new all-time high after strong Q1 results, providing a positive counterpoint to the macro gloom. The DOJ dropped its probe into the Fed's renovation scandal, removing a political distraction for the Fed. S&P downgraded Finland's outlook to negative, citing low growth and rising defense costs, a minor European signal.