WS #5823

Geopolitical tensions surrounding the Iran conflict and the Strait of Hormuz blockade continue to dominate, with oil prices elevated (Brent above $106, WTI near $96). The situation is escalating: Iran's vice president threatened 'eye for an eye' retaliation against oil facilities of countries from which attacks on Iranian oil fields originate. This follows the US considering suspending Spain from NATO for lack of cooperation, as reported by Reuters and corroborated by multiple sources. However, a slight de-escalation signal is the arrival of a tanker at Iraq's Basra terminal to load 2M barrels of crude, the second such vessel since the Hormuz closure. In corporate news, Meta confirmed plans to lay off ~8,000 employees (10% of workforce) to focus on AI investment, a development corroborated by multiple international sources. Intel reported strong Q1 earnings with revenue exceeding estimates and AI CPU demand driving growth, causing a 16% surge in after-hours trading. DeepSeek released V4, an open-source AI model competing with top-tier models at a fraction of the cost, potentially disrupting the AI landscape. European markets are lower, with the CAC 40 down ~1.1%, as Hormuz tensions persist.