WS #5751

The Strait of Hormuz crisis escalates further as Iran's foreign minister states the strait will remain blocked until $11 trillion in frozen Iranian assets are released, a significant escalation from previous demands. This is corroborated by multiple sources (Bluesky, GDELT), reinforcing the high-significance geopolitical risk. Oil prices are already near $100, and the crisis is causing second-order effects: DZ Bank downgraded Lufthansa to 'Hold' citing kerosene availability as a potential bottleneck, and European airports are welcoming the EU's AccelerateEU plan to ensure jet fuel supply. On the corporate side, Warner Bros. Discovery shareholders approved the $81 billion merger with Paramount Skydance (Seeking Alpha, GDELT), a major M&A event. The PHLX Semiconductor Index (SOX) crossed 10,000 for the first time, driven by AI demand. 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: a Bluesky post claims Oracle canceled $1.4B in NVDA server orders, impacting SMCI and NVDA, and Tesla fell after earnings. Rivian's factory was damaged by a tornado, but production of R2 continues. The US Department of Justice reclassified marijuana from Schedule I to Schedule III, a major regulatory shift that could boost cannabis stocks like Tilray. Meta is collecting employee mouse clicks and keyboard inputs to train AI models, a controversial move that could impact META sentiment. Overall, the narrative is one of escalating geopolitical risk in the Middle East with oil prices elevated, while tech shows mixed signals with AI demand strong but specific headwinds for Tesla and potential Oracle/Nvidia order cancellations.