WS #6791

The US-Iran military confrontation continues to escalate, with multiple sources reporting new kinetic events in the Strait of Hormuz. A senior US official confirmed strikes on empty oil tankers attempting to break the blockade, and explosions were reported near Sirik Pier. China confirmed an oil tanker was attacked in the strait earlier this week. However, a counter-signal emerged: Saudi Aramco and ADNOC are moving oil shipments through the strait despite tensions, and the US is awaiting Iran's response to a peace proposal, suggesting diplomatic channels remain open. The narrative is ESCALATING but with a potential de-escalation path. Separately, Chris Hohn slashed an $8 billion Microsoft stake, warning of AI disruption, which is a bearish signal for MSFT. DeepSeek is reportedly seeking up to $7.35B in funding at a $50B+ valuation, signaling accelerated China AI investment. Consumer sentiment slipped more than expected (48.2 vs 49.7 est.), with one-year inflation expectations at 4.5%. RBC Capital raised its S&P 500 year-end target to 7,900. In corporate news, CoreWeave reaffirmed $12B-$13B 2026 revenue outlook, lifting exit run rate floor to $18B. Construction Partners raised FY2026 sales guidance. Wedbush raised Apple price target to $400. A whale bought $1.1M in Shell Dec 2026 calls, a bullish bet on energy. Bearish NVDA option activity was noted ahead of earnings on 5/20.