WS #6577

The dominant theme remains the Iran-UAE conflict and Strait of Hormuz crisis, which is ESCALATING. Iran launched a second consecutive day of missile and drone attacks on the UAE, while the US confirmed its 'Project Freedom' naval operation is underway with two US-flagged ships transiting the strait under destroyer escort. Defense Secretary Hegseth stated the ceasefire holds despite US forces sinking multiple Iranian boats, causing Brent crude to fall 2% to $111.45. However, Iran's IRGC Navy warned all vessels to use only Iran-designated corridors or face 'decisive response', and Chevron's CEO warned of global oil supply shortages unless the strait fully opens. UK long-term borrowing costs hit a 28-year high, with 30-year gilt yields reaching levels not seen since 1998, driven by the Iran war and political uncertainty ahead of UK elections. The ECB's Villeroy stated oil price rises haven't yet impacted inflation enough to warrant rate hikes. In corporate news, Palantir reported strong Q1 results with analysts raising price targets, while Shopify stock slid 7% despite beating estimates and hitting $100B GMV. Honda is shelving its $11B Canada EV plant due to sluggish demand, shifting focus to US hybrids. Meta was sued by five major publishers for copyright infringement over AI training data. OpenAI released GPT-5.5 Instant, claiming 52.5% fewer hallucinations. The SEC proposed allowing companies to shift from quarterly to semi-annual earnings reports. A large bearish whale bet on USO (oil) was detected, with a $3.4M put purchase. The US-Iran ceasefire is nearing collapse as missile interceptions over the UAE and a drone strike on an oil facility heighten tensions.