WS #7705

The dominant narrative remains the Iran conflict and its impact on energy markets, with the IEA warning that commercial oil inventories are being rapidly drained and global oil supply is expected to fall by 3.9 million barrels per day in 2026. The US Treasury's Bessent announced at the G7 that European partners are expected to support Iran sanctions by blocking financiers and shuttering bank branches, and the US is reviewing sanctions lists to focus on sophisticated evasion schemes. This escalation in sanctions rhetoric reinforces the supply squeeze. The ECB's Nagel signaled the ECB may 'have to do something' as the Iran shock persists, indicating potential monetary policy response to the stagflationary shock. In corporate news, NextEra (NEE) is reportedly acquiring Dominion (D) for $67B to power data centers, a major M&A signal in the energy sector. Micron (MU) received a price target hike from Citigroup to $840, and Mizuho raised targets on MU, STM, and TXN on AI tailwinds. X-Energy (XE) drew bullish Wall Street coverage after its $1B IPO. On the macro front, Canada CPI came in at 2.8% vs 3.1% forecast, with core cooling, giving the BoC room to stay patient. The Strait of Hormuz closure continues to dominate Polymarket activity, with multiple contracts on Iranian asset freezes and peace deals. The narrative is ESCALATING on the energy crisis front, with the IEA warning and Bessent's sanctions push adding to supply fears. The MAG7 carve-out: GOOGL showed strong options flow (+113.1%) and is seen as a relative strength name, while TSLA lost its 200-day moving average and sentiment turned negative. NVDA earnings are the key risk event in 1 day.