WS #6561

The US-Iran conflict in the Strait of Hormuz is ESCALATING further, with multiple sources reporting new Iranian missile and drone attacks on the UAE for the second consecutive day. The UAE Defense Ministry confirmed its air defenses are engaging threats, and oil futures pared losses but remain under pressure. The US Secretary of War claimed the Strait is clear for transit, while the White House sent a private message to Iran before a new operation. This contradicts the previous ceasefire narrative and keeps energy markets on edge. Separately, Oracle stock is surging on a new classified US defense deal, and Palantir reported record Q1 results with raised guidance. On the macro front, US ISM Services PMI came in at 53.6 (below consensus), JOLTS job openings at 6.866M (slightly above forecast), and the US trade deficit widened to $60.3B. The EU energy commissioner warned of the most severe energy crisis in history due to the Hormuz closure, with potential jet fuel shortages. Romania's government fell via no-confidence vote, sending the leu to record lows. The dominant theme remains the ESCALATING Iran-US conflict with direct attacks on UAE, which has broad market implications for energy, airlines, and defense stocks.