WS #6548

The US-Iran conflict in the Strait of Hormuz is ESCALATING sharply, with fresh attacks breaking the fragile ceasefire. Iran's IRGC declared all vessels must obtain permission to transit the strait, while the US 'Project Freedom' initiative saw a Maersk ship escorted through under military protection. Iran struck UAE oil facilities at Fujairah with drones and missiles, and the US sank Iranian boats. Brent crude is around $113, WTI near $104, with oil prices easing slightly but remaining elevated. The situation is driving a risk-off tone in emerging markets and European equities, though US futures are modestly higher. Hedge funds are deleveraging tech positions at the fastest pace in a decade, per Goldman Sachs, while retail flows into QQQ remain strong. Apple is reportedly in talks with Intel and Samsung to diversify chip supply away from TSMC, a potential long-term positive for INTC and Samsung but a negative for TSMC. Palantir reported record quarterly profits with 85% revenue growth, but shares slipped premarket. HSBC missed profit estimates due to higher credit losses, sending shares down ~5%. The eurozone faces stagflation risks with GDP growth slowing and inflation rising to 3%. The RBA hiked rates by 25bps to 4.35%, citing Middle East-driven inflation. India's rupee hit a record low. The narrative arc is ESCALATING for the Iran conflict, with no de-escalation signals in this window.