WS #11870

The dominant market-moving theme remains the escalating US-Iran crisis over the Strait of Hormuz, which is ESCALATING. Multiple sources confirm the ceasefire is collapsing, with Iran insisting decisions on Hormuz are solely between Tehran and Oman, rejecting US demands for a public pledge. Oman has proposed a dual-route management plan, but Iran has dismissed any Qatari role in decision-making. Oil prices fell on Friday as traders grew hopeful shipping would resume, but Brent remains set for a ~5% weekly gain. Eni's CEO warned oil could break above $100/barrel by Q1 2027 if the conflict persists. European gas prices have risen to ~50 euros/MWh. The crisis is also impacting shipping and global trade, with reports of reduced shipping capacity and continued attacks on commercial vessels. Separately, Apple has filed a high-profile lawsuit against OpenAI, alleging trade secret theft related to hardware development, which could impact sentiment on both AAPL and the broader AI sector. Meta stock hit a record $670 as AI build costs undercut Wall Street models, a bullish signal for META. The Oregon Attorney General has withdrawn efforts to delay the Paramount-Warner Bros. merger, removing a regulatory overhang for PARA and WBD. SK Hynix's Nasdaq debut was a blockbuster, with shares jumping 14%, signaling continued AI euphoria in semiconductors. The S&P 500 rose to end just short of a record high, driven by tech and AI optimism.