WS #7615

The dominant narrative remains the Strait of Hormuz crisis and its inflationary oil price implications, with Brent crude reaching $111/bbl early Monday before easing to $110 after Iran signaled continued diplomatic engagement via Pakistan. The situation is ESCALATING: a drone strike near the UAE's Barakah nuclear plant adds a new dimension of risk, while Trump warned Iran 'the clock is ticking.' However, a potential counter-signal emerged as Iran said it responded to a new US proposal, and Pakistan continues mediating. The global bond rout continues with the 10-year US Treasury yield hitting 4.631%, its highest since February 2025, and UK gilt yields surpassing 5.19% before paring back. Morgan Stanley warns equities are at risk of a significant pullback from rising yields. In company-specific news, Bitcoin Depot shares crashed 70% pre-market after filing for Chapter 11 bankruptcy, a negative signal for the crypto sector. Baidu reported Q1 earnings with a slight beat on EPS but revenue in-line, while iQIYI missed estimates with revenue down 13% YoY. Regeneron shares fell 12% on disappointing melanoma trial data. Activist Elliott built a big stake in Bio-Rad. NextEra is said to be discussing a deal valuing Dominion at $66 billion. Berkshire Hathaway has now dumped stocks for 14 consecutive quarters, the longest selling streak in its history. SpaceX plans to list on Nasdaq as early as June 12 under ticker $SPCX.