WS #7262

The dominant signal in this window is the escalating maritime security crisis in the Strait of Hormuz, with a vessel boarded by unauthorized personnel and diverted toward Iranian waters, reported by UKMTO and corroborated by multiple sources. This counters the prior narrative of trade progress from the Trump-Xi summit and re-escalates oil supply fears. Separately, India's April WPI inflation surged to 8.30% y/y (est. 4.40%), driven by fuel price inflation at 24.71%, pressuring the RBI to tighten policy and weighing on Indian equities and bonds. The Trump-Xi summit continues with China warning Taiwan tensions could jeopardize ties, while Foxconn's cautious optimism on AI reinforces the AI capex theme. Bitcoin remains under pressure, slipping below $80k amid rate jitters and ETF outflows ($635M in a day). The UK economy grew 0.6% QoQ in Q1, matching expectations, but political instability risks from a potential Labour leadership challenge could weigh on gilts. The narrative arc for the Strait of Hormuz crisis is ESCALATING (new vessel seizure), for India inflation it is NEW (surprise data), and for the Trump-Xi summit it is STABLE (no new trade deal details).