WS #6792

The US-Iran military confrontation in the Strait of Hormuz continues to escalate, with multiple sources reporting new kinetic events. The US military launched airstrikes targeting 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, suggesting the blockade is not fully effective. The narrative remains ESCALATING but with a potential de-escalation path as the US awaits Iran's response to a peace proposal. Separately, consumer sentiment fell to a fresh record low of 48.2 in May, missing estimates of 49.7, driven by surging gas prices due to the Iran war. One-year inflation expectations rose to 4.5%. This reinforces stagflation fears and is bearish for consumer discretionary and growth stocks. In corporate news, 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. 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.