WS #14162
The US-Iran/Hormuz escalation narrative remains the dominant market driver, with the situation ESCALATING. Iran has concluded diplomacy is dead and is preparing a coordinated strike, while the UAE has condemned a third attack on an ADNOC tanker in the Strait of Hormuz within a week, and Iran has rejected Trump's claim that the strait will become US territory. These developments reinforce the bullish case for oil and energy stocks, while pressuring airlines and shipping. Separately, the US is preparing to force countries to pick sides in the AI race with China, which could have significant implications for the global semiconductor supply chain. Anthropic's IPO valuation is being based on projected 2028 revenue of $190-200 billion, signaling extreme growth expectations in AI. Nvidia has scaled back its funding guarantee for an OpenAI data center project, reducing its risk exposure, which is a slight negative for NVDA but may be positive for the broader AI infrastructure narrative as it addresses investor concerns.
Topics
Key developments
- Iran concludes diplomacy dead, prepares coordinated strike against US
- UAE condemns third ADNOC tanker attack in Strait of Hormuz in a week
- Iran rejects Trump's claim that Strait of Hormuz will be declared US territory, vows to continue blockade
- US to tell partners they must pick sides in AI race with China
- Anthropic IPO valuation hinges on 2028 revenue projections of $190-200B
- Nvidia scales back funding guarantee for OpenAI data center project