WS #12216

The dominant theme is the renewed escalation in the US-Iran conflict, with the narrative arc sharply ESCALATING. The US has confirmed strikes on Iran over Strait of Hormuz MOU violations, and Iran's IRGC has warned ships against using alternative routes, threatening enforcement. The UN's IMO has paused its ship evacuation plan after a container ship was attacked near Oman, the first such attack since the ceasefire. This has caused oil prices to spike again, with Brent crude rising. The US has also issued sweeping sanctions waivers on Iranian oil, unlocking billions in revenue for Tehran, which counters the bearish oil thesis somewhat but also signals the fragility of the peace deal. Separately, Micron reported a blowout quarter with revenue quadrupling to $41.46B and gross margins hitting a record 84.9%, with guidance well above estimates, confirming the AI-driven memory boom is accelerating. This is a high-signal positive for the tech sector, particularly for MU and the broader semiconductor space. In corporate news, AeroVironment surged 28% on an earnings beat and a $1.2B backlog, highlighting the defense spending surge. SpaceX stock fell below its IPO price for the first time, indicating cooling enthusiasm. The UK held rates at 3.75% with a 7-2 vote, and inflation held at 2.8%, slightly below expectations. The Fed's preferred inflation gauge (core PCE) hit 3.4%, the highest since October 2023, reinforcing the hawkish stance. China widened export curbs on Japan, targeting defense and drone makers, which adds to geopolitical risk. The EU is preparing a crisis team for a China rare earths stand-off. Overall, the macro picture is risk-off due to renewed US-Iran hostilities and sticky inflation, with energy and defense as beneficiaries, while the AI trade remains supported by Micron's stellar results.