WS #2855

The data dump reveals escalating geopolitical tensions in the Middle East, with the Strait of Hormuz closure emerging as a critical market signal. Iran has begun charging transit fees on commercial vessels, corroborated by Bloomberg and social media reports, while Bahrain is pushing a UN resolution to authorize force to protect shipping, indicating prolonged disruption. This is compounded by fresh military actions: Iran launched a ballistic missile attack on northern Israel, and Hezbollah fired 38 rockets from Lebanon, killing one person, per Israeli Channel 12 and other sources. These developments threaten to sustain oil price volatility, with US oil prices hitting near $93/barrel intraday, and energy stocks like Marathon Petroleum (MPC) reaching all-time highs due to geopolitical risk. Concurrently, the Russia-Ukraine war intensifies, with Russia using almost 1,000 drones against Ukraine since Monday evening, per Reuters, and Ukraine shooting down 541 out of 556 drones, highlighting ongoing conflict risks. In corporate news, ARM unveiled a strategic shift to sell its own AI computing chips for data centers, a historic first that could boost its AI revenue and impact semiconductor stocks. Additionally, the EU reversed its decision to ban Russian oil, scrapping a planned April 15 prohibition, which may ease European energy supply concerns but could pressure oil prices. These events collectively point to heightened energy market instability and specific sectoral impacts.