WS #1598

The Strait of Hormuz crisis continues to dominate market-moving signals, with new escalations and geopolitical developments intensifying supply disruption fears. Iranian ballistic missiles have reportedly struck multiple areas across Riyadh, Saudi Arabia, representing a direct attack on a major U.S. ally and oil producer, corroborating earlier threats of retaliation for strikes on Iran's South Pars gas field. This escalation is driving oil price volatility, with Brent crude exceeding $108 and Persian Gulf oil hitting $150, though real-time data shows Brent at $108.1 (+4.71%) and WTI at $97.74 (+1.59%). Geopolitical alliances are fracturing, with the Wall Street Journal reporting Russia is providing intelligence to Iran to target U.S. forces, while President Trump has lifted sanctions on Russia to allow more oil sales, creating a contradictory dynamic. NATO's Rutte continues discussions about reopening the strait, but European reluctance is evident with Germany ruling out joining a military mission. Countervailing signals include AP News reports that about 90 ships have crossed the Strait of Hormuz as Iran exports millions of barrels of oil despite the war, which could dampen extreme supply disruption fears. Market impacts are broadening beyond energy, with stagflation alarms sounding as red-hot PPI data combines with the oil shock, though U.S. equities show only modest declines (SPY -0.10%, QQQ -0.17%). Individual stock developments provide some offsetting positive signals, including Andreas Halvorsen's significant Boeing purchase and Caterpillar's continued strength from data center power deals.