WS #6527

The Iran-US conflict has escalated sharply, with Iran launching missile and drone attacks on the UAE, including strikes on oil facilities in Fujairah, and the US military sinking six Iranian boats in the Strait of Hormuz. This marks a significant escalation after a fragile ceasefire, with oil prices surging (WTI +4.39%, Brent +5.46%) and US gas prices reaching $4.46/gallon. The White House was briefly locked down after a shooting incident near the Washington Monument, adding to geopolitical uncertainty. The Bank of Canada warned it may raise rates if high energy prices persist, while the RBA is expected to deliver a third rate hike. Cerebras Systems announced a blockbuster IPO targeting a $26.6B valuation, signaling strong AI chip demand. Palantir reported a massive Q1 beat with 85% YoY revenue growth and raised guidance, reinforcing the AI supercycle narrative. GeneDx plunged 42% after hours on lowered guidance. GameStop shares fell 10% after its CEO failed to explain financing for its $55.5B eBay bid. The Iran conflict is escalating, with direct attacks on UAE oil infrastructure and US-Iran naval clashes, driving oil prices sharply higher and threatening global supply chains. This counters any prior de-escalation hopes and reinforces a bearish risk-off sentiment for equities, bullish for energy and defense, and bearish for airlines and consumer discretionary.