WS #6769

The US-Iran conflict in the Strait of Hormuz remains the dominant market narrative, with new developments indicating escalation. Satellite data detected a fire ignition in the Strait near Oman's Musandam province at 22:21 UTC, in the same area where Iran's IRGC Navy claimed three US destroyers were damaged. This is corroborated by a Bluesky post reporting that US and Iran exchanged fire, with WTI crude rising $1.5 to $96.24/barrel. The FT reports that Washington launched strikes after Tehran attacked American destroyers, and a ceasefire is under strain. A Bluesky post also notes that three US destroyers transited out of the Strait, but questions how many barrels of oil they were able to bring through, implying the blockade remains effective. The narrative is clearly escalating, with active military engagement and oil prices reacting. Separately, Nvidia's $500 million investment in Corning to address AI networking bottlenecks is a positive signal for NVDA, corroborated by both Benzinga and Alpaca. Mercado Libre shares dropped over 5% after hours on mixed Q1 results (revenue beat but EPS miss). The Australian S&P/ASX 200 fell 1.7%, likely reflecting risk-off sentiment from the Hormuz escalation. The NFP report is scheduled for Friday, which could be a major catalyst.