WS #2844

The Strait of Hormuz crisis remains the dominant market-moving signal, with escalating tensions directly impacting global energy supplies and inflation. Iran has placed sea mines in the strait, imposed a $2 million transit fee on ships, and threatened full closure if its infrastructure is attacked, corroborated by multiple sources including jetstream.bsky, pro-wire, and Reuters. This has driven oil prices up 3.69% to $91.38, with United Airlines warning of a 20% fare hike to cope with the surge, indicating immediate inflationary pressures on airlines and consumers. The blockade has halted hundreds of oil tankers, spiking costs for UK drivers by £307 million and pushing Canada's gas prices to 175¢/L, the highest since 2022. Geopolitical developments show mixed signals: Iranian sources acknowledge US diplomatic outreach, but Iran demands formal control of the strait and other concessions, while Trump reportedly gave Israel a 60-day window for operations. These factors sustain uncertainty, benefiting oil and gas companies as shares trade higher. In technology, Microsoft secures a Texas data center project dropped by Oracle and OpenAI, bolstering its AI infrastructure amid partnerships with Nvidia, though regulatory concerns persist with a senator urging reconsideration of Nvidia export licenses. Corporate actions include CVD Equipment's bullish sale and Truist's buy rating on Expand Energy, partially offsetting broader energy crisis bearishness.