WS #9542

The US-Iran conflict continues to escalate with a second day of US airstrikes on Iran and Iran closing the Strait of Hormuz again, pushing oil prices above $93. Japan's Takaichi stated 100% of Japan's oil supply will avoid Hormuz in July, a significant supply disruption signal. The Kremlin calls for restraint but no de-escalation is evident. In corporate news, Eaton announced a Reverse Morris Trust transaction to combine its Mobility Group with Dana (DAN), creating a $10B+ entity, with ETN shareholders owning at least 50.1%. This is a major structural deal. Intel (INTC) surged after BofA double-upgraded the stock to Buy with a $135 target, citing AI agent CPU boom and stronger foundry visibility. This is a significant positive for the semiconductor sector. SpaceX IPO coverage initiated by Oppenheimer with Outperform and $190 target, adding to the IPO narrative. OpenAI weighs steep AI token price cuts, which could commoditize access and squeeze margins for AI infrastructure players. The dominant theme is geopolitical escalation with oil/energy beneficiaries, while broader equities face headwinds. The Eaton-Dana deal and Intel upgrade provide selective positive signals.