WS #5749

The Strait of Hormuz crisis continues to escalate, with reports of Iranian forces opening fire on and boarding a container ship (the Epaminondas), pushing the waterway deeper into wartime chaos. This is corroborated by multiple sources (Bluesky, GDELT, Seeking Alpha), reinforcing the high-significance geopolitical risk. Oil prices remain elevated, and second-order effects are visible: sea drones are being used for mine clearance as the U.S. seeks to break Iran's grip. On the corporate side, Warner Bros. Discovery shareholders approved the $110 billion merger with Paramount Skydance (Bluesky, NYT, NBC, Investing.com), a major M&A development. Avis Budget Group shares experienced multiple trading halts due to volatility, following the 57% plunge over two days after Fugazi Research allegations. Tesla continues to face headwinds: Mizuho lowered its price target to $480, and TSLA is down 4.9% in early trading. Texas Instruments reported a 90% surge in data center revenue, leading analog stocks higher. The Trump administration is reportedly nearing a Spirit Airlines rescue package of ~$500M, potentially taking a large stake (up to 90%), which could offset liquidation risk. Natural gas storage came in at 103B vs 96B estimate, a bullish signal for energy. Overall, the narrative is one of escalating geopolitical risk in the Middle East, with oil prices elevated and second-order effects on airlines and consumer confidence, while AI and tech continue to show strong demand signals.