WS #7095

The UK political crisis is escalating sharply, with gilt yields surging to multi-decade highs as PM Starmer faces mounting pressure to resign. The 30-year gilt yield hit 5.794%, the highest since May 1998, while the 20-year yield reached 5.734%, the highest since July 1998. This is corroborated by CNBC, MarketWatch, and multiple Bloomberg/Reuters feeds, with CNBC reporting UK government borrowing costs at their highest since 2008 and analysts saying Starmer is unlikely to last the year. The pound is extending losses. Separately, the Iran crisis remains in deadlock, with Trump stating the ceasefire is on 'life support' ahead of his China visit, and the IRGC Navy claiming it forced a US warship to change course in the Strait of Hormuz. JPMorgan analysis cited in a Bluesky post estimates the market has lost over 1 billion barrels of oil supply due to the Strait blockage, with 100 million barrels lost each week. However, US Treasury Secretary Bessent's comments on JGB yields and confidence in BOJ Governor Ueda suggest a potential counter-signal on inflation expectations. In corporate news, Micron surged 8% to an all-time high, trading at 6.4x PE with 71% growth, and Korean customs data shows DRAM and NAND prices spiking sharply (NAND up 63% in a month), reinforcing the memory super cycle thesis for MU. The overall narrative is dominated by the UK political crisis (ESCALATING) and the Iran/oil disruption (STABLE/DE-ESCALATING? — ceasefire on life support but no new escalation). The UK gilt crisis is the highest-signal development, with direct implications for UK financials and the pound, and potential contagion to global bond markets.