WS #6229

The US-Iran conflict continues to escalate, with Brent crude oil surging to $119/barrel, the highest since 2008, following reports that the US is preparing for an 'extended' blockade of Iran. President Trump confirmed the naval blockade will remain until a diplomatic deal is reached, and CENTCOM has reportedly prepared strike plans against Iran. The Pentagon disclosed the war has cost $25 billion so far. This oil shock is driving UK borrowing costs to their highest since 1998 and German inflation to 2.9%. The Fed decision later today is expected to hold rates steady, but the oil shock complicates the inflation outlook. Kevin Warsh's nomination to lead the Fed cleared the Senate Banking Committee 13-11, moving to a full Senate vote. In corporate news, Amazon stock hit an all-time high ahead of Q1 earnings, with all MAG7 earnings due after the bell today. Visa reported strong results with a 12% increase in cross-border volume and a $20 billion buyback. NXP Semiconductors surged 26% on earnings beat. Starbucks reported strong results with traffic at a three-year high. Seagate hit an all-time high on AI demand. The UAE's plan to exit OPEC is viewed as a huge blow to the organization, though Algeria reaffirmed its commitment to OPEC+. Netanyahu unexpectedly canceled a Washington trip. Flights resumed at Iran's Imam Khomeini International Airport after 57 days.