WS #8111

The dominant theme in this window is the escalating US-Iran diplomatic situation, with multiple sources now reporting an agreement 'in principle' to reopen the Strait of Hormuz. A Bloomberg report cites Rubio hinting at 'some good news' in the coming hours, while a Substack post claims a deal has been agreed in principle. A New York Times report details the deal components: reopening the Strait without tolls, lifting the US naval blockade, and releasing $25 billion in frozen Iranian assets. This represents a potential de-escalation of the energy crisis, directly countering the previous bearish oil narrative. However, a separate Bloomberg report notes that energy prices still pose a challenge for travelers, and Lufthansa warns of $2 billion in additional fuel costs, indicating the crisis is not yet resolved. The 30-year Treasury yield has soared to 5.18%, a significant macro signal that could pressure equities. On the corporate front, Disney's 'The Mandalorian and Grogu' opened with $102 million over the four-day holiday weekend, beating expectations but still the lowest Star Wars opening for Disney. A Seeking Alpha article notes Hassett foresees oil relief and room for Fed cuts if energy prices fall, which could be a counter-signal to the energy crisis narrative. The Iran deal narrative is now ESCALATING toward a potential resolution, with the Strait of Hormuz blockade likely to be lifted soon.