WS #6114

The dominant market theme remains the Iran-US conflict, which is ESCALATING despite a fragile ceasefire. Iran has offered to reopen the Strait of Hormuz if the US lifts its blockade and ends the war, but the US has rejected this conditional proposal, with Secretary Rubio stating the US cannot accept Iran controlling the strait. The White House confirmed Trump met with his national security team to discuss Iran's latest proposal, but no breakthrough is apparent. Oil prices continue to surge (WTI +2.09% to $96.37, Brent +2.82% to $108.23) as the Strait of Hormuz remains effectively closed. Multiple sources report that Iran's oil storage capacity is depleting, risking permanent damage to its oil fields. Ukraine has intensified long-range strikes on Russian oil and gas infrastructure, adding further supply-side pressure. On the corporate front, Nvidia (NVDA) hit a new all-time high above $5 trillion market cap, while Arm (ARM) snapped a seven-day winning streak on AI concerns. Polaris (PII) beat Q1 estimates and raised guidance. The S&P 500 and Nasdaq closed at record highs despite geopolitical tensions, indicating a 'risk-on' sentiment that may be fragile. The Bank of Japan is expected to hold rates at 0.75% at its meeting Tuesday. China blocked Meta's $2 billion acquisition of AI startup Manus, sending a chill through the AI sector. Microsoft and OpenAI restructured their partnership, ending exclusivity and allowing OpenAI to use other cloud providers, which could impact Azure's competitive position.