WS #7066

The dominant narrative remains the escalating U.S.-Iran conflict and its impact on oil markets, with no genuine de-escalation signals in this window. Oil prices continue to spike (WTI +2.98%, Brent +2.93%) amid reports that the UAE has been conducting strikes against Iran, including on Lavan Island refinery, and that Trump is reportedly inclined to resume military activity against Iran. The Strait of Hormuz blockade persists, with Pictet warning that short-term inflation rates have not priced in an extended closure. Polymarket data shows heavy trading on Iran-related outcomes (peace deal, Hormuz reopening, uranium enrichment), indicating high uncertainty. On the earnings front, several notable reports crossed: Hims & Hers Health missed Q1 estimates due to GLP-1 competition and margin pressure, with CFO expecting return to profitability only in 2027; BuzzFeed announced a $120M majority investment from Byron Allen at $3/share, with trading halted pending news; STERIS reported Q4 results with FY27 guidance above estimates and announced a $1B buyback; Novanta beat estimates and raised FY26 sales guidance; AST SpaceMobile dropped after a weak Q1 report; Microvast missed badly on both EPS and revenue. ServiceNow plans to raise $4B in a bond sale. The EU sanctioned violent Israeli settlers after months of deadlock. Overall, the macro picture is dominated by escalating Iran tensions and oil supply risk, while earnings season continues to produce mixed results. Key developments include Trump's proposal to suspend the federal gasoline tax to offset surging fuel prices, which could provide a temporary consumer relief but requires Congressional approval. The UAE's secret strikes on Iran, confirmed by WSJ, add a new dimension to the conflict and increase the risk of further escalation. UK political turmoil is intensifying, with senior Labour figures urging PM Starmer to set a resignation timetable after heavy local election losses, which could create policy uncertainty. On the corporate side, BuzzFeed's $120M investment from Byron Allen at $3/share represents a significant premium to recent trading levels, while Microvast's 48% revenue decline highlights the impact of geopolitical dynamics on specific sectors.