WS #6509

The Iran-UAE conflict has escalated dramatically, with Iran launching drone and missile attacks on a UAE oil port and multiple ships in the Strait of Hormuz, setting an oil facility ablaze and prompting the UAE to signal retaliation. Brent crude surged over 5% to $119/barrel, and the UAE implemented distance learning from May 5-8. The US denied Iran's claim of striking a US warship, while Israel opened bomb shelters and assessed the fragile ceasefire may collapse. This marks a major escalation from the previous stable situation, with oil supply fears driving energy prices higher and threatening global markets. Separately, Amazon launched a new logistics service (Amazon Supply Chain Services) directly competing with FedEx and UPS, causing those stocks to drop. GameStop made a $56 billion unsolicited bid for eBay, though financing remains uncertain. Fed's Williams indicated rates are well-positioned amid Iran war uncertainty, while the ECB's Nagel signaled a potential June rate hike. Russia announced a unilateral three-day ceasefire in Ukraine for Victory Day, but Ukraine has not agreed. The US Supreme Court temporarily restored access to mifepristone. Oil price surge: Brent +5.08% to $113.7, WTI +3.09% to $105.1. Gold fell 2.69% to $4,519.71. European gas TTF +6.84%.