WS #6531

The US-Iran conflict has escalated sharply, with both sides exchanging fire in the Strait of Hormuz on Monday, shattering the fragile ceasefire. Iran launched drone and missile attacks on UAE oil facilities, including a strike on a VTTI terminal in Fujairah, and fired on commercial shipping. The US military destroyed seven Iranian fast boats and opened a passage through the strait under 'Project Freedom'. Oil prices surged, with Brent up 5.8% to $114.44/barrel and WTI up 4.39% to $106.42/barrel. The Dow fell 1.13% on the escalation. Qatar, UAE, and Oman issued partial airspace closures. The IEA chief urged Canada to accelerate energy infrastructure projects to capitalize on the crisis. Separately, Palantir's blowout earnings continue to generate positive commentary, with a Rule of 40 score of 145 and FY26 guidance of $7.64B vs $7.28B est., reinforcing the AI/defense tech bull case. Amazon announced it is opening its logistics network to all businesses, directly competing with FedEx and UPS, whose stocks fell 10% and 9% respectively. Spirit Airlines officially shut down after a $500M bailout failed, with its fleet already parked in a graveyard. The American Airlines pilots union chief issued critical statements about the carrier's state, adding pressure on AAL. Elon Musk settled the SEC lawsuit over Twitter disclosures for a $1.5M fine. OpenAI raised $110B, including $50B from Amazon. The Eurogroup warned of a 'stagflation shock' from the energy crisis, and the IMF's Georgieva warned of a 'much worse outcome' if the war continues with oil at $125/barrel. The US and Israel are weighing strikes on Iranian energy infrastructure, per Israel Hayom. The narrative is one of ESCALATION in the Middle East conflict, with oil prices and geopolitical risk dominating markets.