WS #14097

The dominant Middle East/oil narrative continues to escalate with no counter-signals. The US has threatened an 'indefinite' naval blockade of Iran, and Treasury Secretary Bessent announced new measures to exert unprecedented economic pressure, while Iran maintains the Strait of Hormuz is closed and under its control. Two ADNOC-affiliated tankers were attacked by drones in the Strait, with the UAE blaming Iran, and traffic through the strait remains ~90% below pre-conflict baselines, pushing vessels toward the Tehran-controlled northern route. WTI crude rebounded over 1% to ~$82.30, with Brent near $88, as the standoff shows no sign of resolution. Additionally, Ukraine continues to hammer Russian oil infrastructure, with the Ust-Luga port fire and the Orsk refinery shutdown removing further supply. This environment is bullish for energy names (XOM, CVX, MPC) and bearish for airlines (DAL, UAL) and other oil-sensitive sectors. In corporate news, Oracle rebounded from lows after stating its New Mexico Project Jupiter remains 'on schedule,' countering earlier reports of a delay to Feb 2027; ORCL was -4% earlier. PayPal is in talks to sell itself to a group including Stripe and Advent International, a potential major fintech M&A event. Apple has trained a China-specific AI model with Alibaba's support, a strategic move in its most competitive market. Reddit is soaring on S&P 500 inclusion, up ~11%.