WS #10109

The dominant narrative remains the US-Iran Memorandum of Understanding (MoU), which is now formally signed and activated. Iran reports normal shipping operations at southern ports, and Kuwait Petroleum Corp's CEO says Kuwait will reach 2 million bpd within a week, dramatically accelerating supply. This continues to counter the prior oil supply crisis thesis, pushing oil lower and acting as a massive buy signal for equities. The UK Foreign Office has dropped 'do not travel' advice for the UAE, Qatar, and most of Saudi Arabia, confirming de-escalation. On the macro front, the US Leading Economic Index rose 0.1% in May (in line), and market pricing reflects expectations for two Fed rate cuts by Q1 2027. The EIA natural gas storage came in at 73B vs 76B forecast, slightly bullish for gas. On corporate news, Tower Semiconductor and Marvell shipped over 5 million photonic chips for AI data centers, with Marvell receiving a Keybanc price target raise to $385. A large $MRVL short liquidation ($98.2K) was noted. Micron (MU) continues to see bullish analyst upgrades (Stifel to $1500, Wedbush to $1300). Jabil (JBL) reported strong Q3 results and raised guidance. Smith & Wesson Brands (SWBI) surged on strong Q4 results. The Ukraine-Russia energy war narrative continues with a massive drone attack on Moscow refinery, but the oil market impact is being overwhelmed by the Iran deal counter-signal. The Supreme Court struck down the federal gun ban for marijuana users, but this is not directly market-moving. The overall narrative arc is: Iran deal de-escalating oil crisis, offsetting Ukraine energy war escalation.