WS #6774

The US-Iran conflict in the Strait of Hormuz has escalated significantly, with multiple sources reporting an exchange of fire between US and Iranian forces. BBC, Al Jazeera, and several social media accounts confirm that US Navy destroyers were attacked by Iranian missiles and drones, and the US responded with self-defense strikes. President Trump stated the ceasefire is still in effect but warned Iran to 'sign an agreement fast.' Brent crude spiked 7.5% to $103.70. This escalation reinforces bullish energy and defense sectors while pressuring indices and consumer stocks. Separately, a US federal court ruled Trump's global 10% tariffs unlawful, which could boost import-heavy sectors and pressure domestic producers. Toyota reported a 49% drop in Q4 operating profit due to US tariffs and Middle East tensions, forecasting a 22% net profit decline for FY26. Bitcoin slipped to $79,000 amid the geopolitical tensions, with negative funding rates setting a 10-year record.