WS #5918

The dominant signal in this window is the escalation of Iran-US tensions, with Iran threatening to respond to the US blockade of its ports, calling it 'piracy'. The US Navy is clearing Iranian mines from the Strait of Hormuz, a process that could take months, keeping oil supply risks elevated. The EU has started rolling out a ban on Russian LNG spot purchases, adding to supply tightness as global LNG is already disrupted by the Hormuz crisis. Meanwhile, the Fed is expected to hold rates steady, facing inflation pressures from higher oil prices. A key development is the DOJ dropping its criminal investigation into Fed Chair Jerome Powell, removing a political overhang for the central bank. Google's $40B investment in Anthropic signals continued AI capex intensity. On the earnings front, industrial firms are beating estimates, but geopolitical risks are flagged as a margin headwind. The Iran situation is escalating, with no diplomatic resolution in sight, keeping energy markets on edge.