WS #11895

The US-Iran conflict has sharply escalated in the last hour, with Iran closing the Strait of Hormuz after striking a Cyprus-flagged container ship, and the US launching a third round of strikes against Iranian military targets. Iran has also struck targets in Bahrain, Qatar, Jordan, and the UAE, prompting air defense alerts across the Gulf. This represents a major escalation from the previous ceasefire narrative, with the Strait of Hormuz closure directly threatening global oil supply. Oil prices are expected to surge, impacting energy stocks, airlines, and consumer sectors. The situation is rapidly evolving with no de-escalation signals yet. Separately, Apple has filed a lawsuit against OpenAI and two former employees for trade secret theft related to AI hardware, which could affect sentiment on AAPL and AI-related stocks. Microsoft's carbon emissions rose 25% in FY2025 due to AI data center expansion, complicating its carbon-negative pledge. Bernstein reiterated a $150,000 Bitcoin year-end target despite current bear market, while Bloomberg strategist McGlone called crypto a 'dead' asset class predicting Bitcoin to $10,000.