WS #11595

The dominant theme in this window is the escalation of the Strait of Hormuz crisis, with a tanker attack reported and oil prices surging. WTI crude rose 2% to $70.25 and Brent over 2% to $73.52, with futures extending gains. This is corroborated by multiple sources including a Bloomberg headline on BP boosting jet fuel output by 30% during the Iran conflict, and a Polymarket event on Strait of Hormuz traffic. The attack on a tanker near the Strait is a new development that escalates the previous stable situation. Additionally, Ukrainian drones struck Russia's largest oil refinery in Omsk, Siberia, marking the deepest strike yet against Russian energy infrastructure, which adds to supply-side risks. On the macro front, Fed's Williams expects falling energy prices to drive inflation down, which is a counter-signal to the oil spike narrative. In corporate news, Vertex Pharmaceuticals agreed to acquire Crinetics Pharmaceuticals for $85/share (~$10B total), sending CRNX up ~99%. Nigel Farage resigned as UK MP, triggering a by-election, but this is UK-specific and not directly market-moving for US equities. The chip sector is under pressure with Intel, AMD, Micron, Marvell all sliding, partly due to Samsung profit-taking and broader AI capex concerns. Apollo's Slok warned that S&P 493's stalled margins are a big-tech risk, which is a bearish signal for the broader market. The overall narrative is ESCALATING on oil/geopolitical risk, with a counter-signal from Fed's Williams on energy prices.