WS #6578

The Iran-UAE conflict remains the dominant theme, with the situation ESCALATING. Iran launched a second consecutive day of missile and drone attacks on the UAE, hitting a critical oil site in Fujairah, as confirmed by Al Jazeera and multiple social media sources. The Strait of Hormuz remains effectively closed, with the IRGC Navy warning vessels to use only designated corridors or face a 'decisive response'. Despite Defense Secretary Hegseth claiming the ceasefire holds and that two US-flagged ships transited safely, oil prices are down 4% on the day, suggesting markets are pricing in a lower risk premium. However, the FT and other sources note the ceasefire is 'flimsy' and the situation could get 'much, much worse'. Separately, the US-Iran ceasefire is nearing collapse as missile interceptions over the UAE and a drone strike on an oil facility heighten tensions. In corporate news, PayPal shares fell 9% after announcing plans to cut ~20% of its workforce, while DuPont shares rose over 7% on strong Q1 results and an accelerated buyback. Honda is shelving its $11B Canada EV plant, shifting focus to US hybrids. 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.