WS #11985

The Strait of Hormuz crisis continues to escalate with Trump announcing a re-blockade and a 20% cargo toll, now widely corroborated by multiple sources (Bluesky, The Sun, BBC, Politico). Houthi missile strikes on Saudi Arabia (Abha airport, King Khalid airbase) are reported as the first direct hits since 2022, breaking a four-year truce. Oil surged over 4% (Brent +4.08% to $79.11). However, Axios notes the blockade hasn't taken effect yet due to a 24-hour notification requirement, acting as a minor counter-signal. Fed Governor Waller delivered a hawkish speech, stating another high inflation print would be treated as 'signal not noise' and that he would consider a rate hike. He also discussed potential changes to the dot plot, including releasing it a day after the meeting and possibly eliminating long-run estimates. This adds to the bearish macro backdrop for growth/tech stocks. Gold plunged 3%+ on Waller's comments. Separately, a federal judge voided Trump's IRS settlement, ruling it was filed for an 'improper purpose,' and referred his lawyers for discipline. This has limited direct market impact but adds political noise. The Paramount-WBD merger faces a lawsuit from 12 state AGs, adding uncertainty to the deal. Apple has filed a lawsuit against OpenAI alleging theft of trade secrets, which could impact sentiment on AI-related names. General Fusion (GFUZ) debuted on Nasdaq, surging 40% as the first publicly traded fusion company. Tech stocks showed mixed performance with NVDA +1.1%, AVGO +4.49%, AMD +7.32%, TSLA +6.05% surging, while MSFT -1.13% and ARM -7% ahead of earnings. The narrative is ESCALATING on the Hormuz front, with new military actions and the 20% fee, but the counter-signal of a potential near-term resolution tempers the bearish thesis.