WS #11977

The dominant narrative in this window is the US-Iran Strait of Hormuz escalation, which is ESCALATING. Trump announced the reinstatement of a naval blockade of Iran, declared the US the 'Guardian of the Strait of Hormuz,' and plans to impose a 20% fee on all cargo transiting the strait. This has been corroborated by multiple sources (AP, Al Jazeera, CBS, multiple Bluesky posts). The UN shipping agency has stated there is no legal basis for such tolls, adding to uncertainty. Oil prices have spiked (WTI +4.76%, Brent +4.67%), and shipping traffic through the strait has fallen to a one-month low. Separately, a federal judge voided Trump's IRS settlement, referring his lawyers for disciplinary action—a political/legal development but with limited direct market impact. The Paramount Skydance-WBD merger faces a lawsuit from 12 state AGs, including California, seeking to block the $110B deal on antitrust grounds. This is a high-significance media/entertainment sector development. AI-related news includes Apple's lawsuit against OpenAI (trade secret theft) and commentary that AI spending fundamentals remain intact despite geopolitical jitters. Semiconductor stocks are under pressure due to South Korea weakness (Samsung, SK Hynix) and rising energy costs.