WS #6560

The US-Iran Strait of Hormuz crisis is escalating sharply, with multiple sources reporting Iranian missile and drone attacks on UAE oil facilities and the UAE Defense Ministry confirming it is engaging threats. Iran's top advisor states the Strait is closed and will reopen only at Tehran's discretion, while the US announces 'Project Freedom' to escort ships. This marks a significant escalation from the previous ceasefire narrative. Separately, Intel shares surged over 12% on reports that Apple held preliminary talks with Intel and Samsung about using their processors for main chips in Apple devices, contradicting the prevailing macro tech narrative. Oracle stock is surging on a new classified US defense deal. GameStop's $56B bid for eBay is being met with skepticism, with Michael Burry exiting his position and shares trading lower. On the macro front, US ISM Services PMI came in at 53.6 (slightly below consensus), JOLTS job openings at 6.866M (in line), and new home sales beat expectations at 682K annualized. The EU energy commissioner warned of the most severe energy crisis in history due to the Hormuz closure, with potential jet fuel shortages. Romania's government fell via no-confidence vote, sending the leu to record lows. The dominant theme is the ESCALATING Iran-US conflict with direct attacks on UAE, which has broad market implications for energy, airlines, and defense stocks.