WS #11578

A tanker was struck by a projectile in the Strait of Hormuz early Tuesday, reigniting geopolitical risk just as US-Iran peace talks appeared to stall. This fresh attack, reported by Al Jazeera, AP, and UKMTO, comes hours after President Trump warned he would 'finish the job' in Iran, and as Iran mourns its slain Supreme Leader. The incident directly threatens the fragile late-June ceasefire and the resumption of normal oil flows through the chokepoint, which had already seen a partial recovery. Oil prices edged up slightly on the news, with Brent crude rising to $72.29/barrel. The attack is a clear escalation signal that the Strait of Hormuz remains unsafe, countering the prevailing narrative of de-escalation and peace deal progress. Separately, Asian chip stocks slid as Samsung's massive profit surge failed to calm AI valuation fears, with Samsung shares tumbling 9% despite a 19-fold profit increase. This weakness in the semiconductor sector, a key driver of the recent tech rally, suggests growing investor skepticism about AI spending sustainability. Meanwhile, Microsoft announced 4,800 job cuts (2.1% of workforce), primarily in Xbox and sales, as it pivots resources toward AI infrastructure, adding to the mixed signals in the tech sector. The dominant narrative is shifting from 'de-escalation in the Middle East' to 're-escalation risk in the Strait of Hormuz,' which is bearish for indices and bullish for energy, while the tech narrative is showing signs of strain.