WS #6528

The Iran-US conflict has escalated dramatically, with the ceasefire effectively broken. Iran launched a fourth wave of missile and drone attacks on the UAE, hitting the Fujairah oil port and causing a large fire, while the US Navy sank six Iranian boats and intercepted missiles in the Strait of Hormuz as part of 'Project Freedom'. The US also intercepted 50 Iran-linked commercial vessels to enforce a naval blockade. Oil prices surged, with Brent crude passing $115/barrel, and US gas prices hit $4.46/gallon. The White House was briefly locked down after Secret Service officers shot an armed person near the Washington Monument. The escalation counters any prior de-escalation hopes and reinforces a bearish risk-off sentiment for equities, bullish for energy and defense, and bearish for airlines and consumer discretionary. Separately, Cerebras Systems announced a blockbuster IPO targeting a $26.6B valuation, signaling strong AI chip demand. Palantir reported a massive Q1 beat with 85% YoY revenue growth and raised guidance, reinforcing the AI supercycle narrative. GeneDx plunged 42% after hours on lowered guidance. GameStop shares fell 10% after its CEO failed to explain financing for its $55.5B eBay bid. The Iran conflict is escalating, with direct attacks on UAE oil infrastructure and US-Iran naval clashes, driving oil prices sharply higher and threatening global supply chains.