WS #6543

The US-Iran conflict in the Strait of Hormuz continues to ESCALATE sharply, with multiple sources reporting fresh attacks and civilian casualties. Iran alleges US forces killed five civilians on passenger boats, while a fire engulfs commercial vessels at Iran's Dayyer Port. Hundreds of vessels cluster near Dubai as ships avoid the Strait. Iran's parliament speaker Qalibaf says the 'new equation' in the Strait is being solidified, and Iran's foreign minister warns there is 'no military solution.' President Trump threatens Iran and claims US forces shot down seven Iranian boats. Chevron's CEO warns of physical oil shortages hitting Asia first. Brent crude surged past $126 per barrel. The RBA hiked rates to 4.35% for the third consecutive meeting, signaling more hikes to 4.7%. HSBC missed estimates due to a $300M Middle East provision and UK fraud charge. Asian markets retreated, the Indian rupee hit a record low, and UAE stocks (ADNOC, Emaar, Air Arabia) fell 2-4% in early trade. Russia declared a unilateral ceasefire in Ukraine for Victory Day, but Ukraine dismissed it as 'not serious.' Ukrainian drone strikes hit a Russian oil refinery and a defense plant. The dominant narrative is ESCALATING military confrontation with sustained oil supply disruption, cascading into central bank tightening, currency stress, and corporate earnings impacts.