WS #7399

Markets are under severe pressure from multiple fronts. The Trump-Xi summit concluded without a chip deal or Strait of Hormuz resolution, with Trump stating he 'made no commitment either way' on Taiwan, dashing hopes for de-escalation. Inflation expectations are surging, with the Survey of Professional Forecasters projecting CPI at 6% in Q2, up from 2.7% three months ago. The Strait of Hormuz closure continues to drain global oil inventories, with Capital Economics warning Brent could hit $130-140/bbl by end-June. UK political turmoil is intensifying as PM Starmer faces mounting pressure to resign after a calamitous local election result and multiple resignations. US indices are falling sharply: SPY -0.9%, QQQ -1.3%, with NVDA down 3.6% and TSLA down 3.8%, while AAPL is flat. The dominant narrative is ESCALATING: the Iran/oil supply crisis, inflation, and UK political instability are all intensifying. A key counter-signal is the US Energy Secretary stating the US could easily double natural gas exports with no impact on domestic prices, which could partially offset energy supply concerns. Additionally, Pakistan confirmed repatriation of 11 Pakistani and 20 Iranian nationals from vessels seized by the US, suggesting some de-escalation in maritime tensions. CrowdStrike hit a new all-time high on analyst optimism, providing a rare bright spot in tech.