WS #6100

The dominant market theme remains the Iran-US conflict, which is ESCALATING in terms of diplomatic tension. Iran has proposed reopening the Strait of Hormuz if the US lifts its blockade and ends the war, but the White House and Secretary of State Rubio have signaled the offer is insufficient, as it would leave Iran with leverage over the waterway and postpone nuclear talks. This has kept oil prices elevated (Brent near $108-109, US gas at $4.08 national average) and gold under pressure (down 1% to $4,693.70) as the Fed meeting looms. German Chancellor Merz publicly criticized US strategy, saying the US is being 'humiliated' by Iran, adding to transatlantic friction. Separately, Starboard Value has built a stake in Flowserve (FLS), sending shares higher, and the Pentagon added Google's Gemini models to its secure AI platform, boosting Alphabet (GOOGL). Michael Burry disclosed puts on SOXX, betting against semiconductors. The White House Correspondents' Dinner shooting suspect has been charged with attempted assassination of President Trump, but this is a security/political story with limited direct market impact beyond potential volatility in defense and security-related names.