WS #6540

The US-Iran conflict in the Strait of Hormuz has sharply ESCALATED, with Iran launching missile and drone attacks on UAE oil infrastructure and vessels, and the US destroying Iranian fast boats and escorting ships through the strait. Brent crude surged ~6% to $114.44/bbl, US stocks fell (Dow -1.13%), and Asian markets declined. Multiple sources (BBC, Guardian, Bloomberg, FT, NBC, Reuters) corroborate the attacks, with the UAE confirming missile interceptions and a fire at an oil port. Iran's IRGC published a new control zone map expanding its reach to UAE ports. The Strait remains effectively closed, with 800+ ships stranded. Oil prices are expected to remain above $100, with US gasoline prices potentially reaching $5/gallon. This escalation counters any hopes of a near-term ceasefire and reinforces the bullish oil narrative. Separately, Spirit Airlines officially shut down over the weekend, citing 'recent geopolitical events' causing a massive fuel price spike, stranding thousands of passengers. This is a direct second-order effect of the Iran war on the airline sector. In corporate news, Meta is working with Morgan Stanley and JPMorgan on a ~$13 billion financing package for an El Paso data center, signaling continued massive AI infrastructure spending. Grab reported strong Q1 earnings (revenue +24%, profit up 12x), beating estimates, driven by resilient ride-hailing and delivery demand despite higher fuel costs. The EU and Saudi Arabia condemned Iran's attacks on the UAE, with German Chancellor Merz urging Iran to return to negotiations. The dominant narrative is ESCALATING military confrontation with direct attacks on UAE soil, sustained oil supply disruption, and cascading economic impacts on airlines and consumers.