WS #1160

The geopolitical tensions in the Strait of Hormuz have intensified, corroborated by multiple sources, with the U.S. Navy moving two of its three Gulf-based minesweepers to Malaysia for a 'logistical stop' as Iran threatens shipping, and a Guardian podcast detailing Iran's explicit threat to close the strait. This escalation directly threatens 20% of global oil flows, creating immediate upside pressure on oil prices and volatility in energy sectors. Notably, new developments include Malaysia declaring a U.S. trade deal void, risking over $500B in global trade flows, and Trump threatening Cuba amid a power crisis, adding broader geopolitical uncertainty that could dampen risk sentiment. The Australian dollar's strength ahead of an interest rate decision persists as a secondary signal. In contrast, bullish signals emerge from Nvidia's CEO doubling AI demand outlook to $1 trillion, potentially offsetting some negative sentiment in tech, and Ethereum shows a bottom signal with a surge past key support. Other items like crypto volume spikes and entertainment news remain less impactful.