WS #6552

The Strait of Hormuz conflict remains the dominant market narrative, with the situation ESCALATING. US Defense Secretary Hegseth confirmed Operation Project Freedom is temporary and separate from Epic Fury, stating the US blockade remains in full effect and hundreds more ships are lining up to transit. Hegseth warned Iran will face overwhelming firepower if it attacks commercial shipping. Top US General Caine reported Iran has fired at commercial vessels nine times and seized two container ships since the ceasefire was announced, but noted attacks have been below the threshold of restarting major combat operations. Iran continues to attack its neighbors, striking a key UAE oil hub in Fujairah. The US and Israel are reportedly discussing a new round of attacks against Iran per CNN. Oil demand destruction has begun per Rystad Energy, while the IEA warns of a growing supply gap. UK long-term borrowing costs hit a 28-year high. The RBA delivered a third straight rate hike. In corporate news, Apple is reportedly in preliminary talks with Intel and Samsung for chip supply, a potential shift from its reliance on TSMC. Palantir reported its fastest growth ever as a public company with revenue of $1.63B, but shares slid 3% premarket. Coinbase cut 14% of its workforce. Aptiv slashed FY26 guidance dramatically. Amazon is opening its logistics network to other businesses. Ferrari beat Q1 expectations ahead of its EV debut. Cytokinetics reported positive Phase 3 results for aficamten in non-obstructive HCM. GlobalFoundries rose on Q2 outlook beat. Bitcoin ETFs saw $532M in inflows as BTC surged past $80,000. Andreessen Horowitz launched a $2.2B crypto fund. Standard Chartered invested $150M in GSR at a $1B valuation.