WS #12077

The dominant narrative remains the US-Iran escalation, which is now intensifying with new military actions and political developments. The US has resumed its naval blockade of Iranian ports, with over 20 warships and hundreds of aircraft deployed. Iran has declared intent to control the Strait of Hormuz, and its deputy foreign minister stated Iran will never negotiate with the US. A bulk carrier partially sank near the Strait, raising shipping disruption concerns. Senate Democrats blocked the NDAA defense bill in protest of the Iran war, adding political uncertainty. Meanwhile, a counter-signal emerged: the US is advancing talks for an Iraq-Syria pipeline that would bypass the Strait of Hormuz, potentially reducing Iran's leverage. On the corporate side, IBM's disastrous preliminary Q2 results (stock down ~24%) dominate tech headlines, with the company citing failure to keep up with spending shifts toward data center infrastructure and cybersecurity. Meta faces a lawsuit alleging AI-driven layoffs discriminated against employees. Aehr Test Systems reported strong Q4 results and issued FY27 guidance well above estimates, sending shares higher. New York imposed a one-year moratorium on large data centers, impacting tech infrastructure. The CPI relief and strong bank earnings from the prior window carry forward as positive macro factors.