WS #5961

The dominant narrative remains the Iran-US conflict and its impact on oil markets, with significant escalation detected. The US has deployed three aircraft carriers and ten destroyers to blockade the Strait of Hormuz, aiming to cut off Iran's seaborne trade. Iran's Revolutionary Guard has responded by declaring control of the Strait as a strategic weapon against the US, raising the risk of direct confrontation. This blockade is a major escalation from previous air strikes and could severely disrupt global oil supply, pushing crude prices higher. Additionally, air defense sounds were reported in Iran's Kermanshah, though the cause is unknown, adding to geopolitical uncertainty. On the tech side, OpenAI launched ChatGPT Images 2.0, a next-gen AI image system, which could boost sentiment for AI-related stocks. AMD's all-time high breakout continues, with CPUs being highlighted as a forgotten chip in AI development. Apple's CEO transition to John Ternus signals a renewed focus on hardware and AI, potentially impacting AAPL. The Colombia bomb attack (death toll rising to 13) is a tragic event but has limited direct US market impact. The US DOJ closing the Fed investigation into cost overruns removes a regulatory overhang for the Fed, but the broader macro impact is muted. The previous narrative on P&G's profit warning is not refuted but is not carried forward as no new data appears.