WS #9291

Markets opened higher on Monday after a volatile weekend, with the Dow, S&P 500, and Nasdaq all rising as Iran reportedly halted strikes on Israel, triggering a relief bounce. However, the geopolitical landscape remains highly unstable: Iran completely suspended all flights nationwide, Houthis declared a maritime blockade of Israel in the Red Sea, and Israel continues heavy strikes on southern Lebanon. Oil prices surged over 4% with WTI above $94, and Fitch warned Brent could stay at $100-110/barrel through July if the Strait of Hormuz remains closed. Counter-signals include OPEC+ approving a fourth consecutive output increase of 188,000 bpd for July, G7 planning a demining operation in the Strait of Hormuz, and Fitch's view that oil production will recover quickly after reopening. The US2Y yield hit a fresh 52-week high, reflecting rate expectations. In corporate news, Amazon and Corning signed a multibillion-dollar pact for US-based fiber optics to power AI data centers, sending GLW up nearly 10%. Google and Nvidia are reportedly considering Intel as a backup chip manufacturer, driving INTC gains. Strategy (MSTR) bought 1,550 Bitcoin, and BitMine purchased $213M worth of Ethereum. VinFast reported Q1 revenue up 42% YoY but missed EPS estimates. The overall narrative is one of cautious optimism tempered by elevated geopolitical risk and oil prices, with the Iran-Israel conflict ESCALATING despite temporary de-escalation signals.