WS #6571

The dominant theme remains the escalating Iran-UAE conflict, with multiple sources confirming a second consecutive day of Iranian missile and drone attacks on the UAE, targeting Fujairah port and oil infrastructure. The Strait of Hormuz remains effectively closed, with oil prices elevated around $115/bbl Brent. The UN Security Council has scheduled a closed-door meeting for May 6 to address the attacks. US Navy destroyers have transited the Strait and positioned off the UAE coast as mobile air defense assets. Trump made contradictory statements, claiming Iran wants a deal while also alleging 42,000 casualties in Iran. The EU energy commissioner warned this could become the most severe energy crisis in history, with the EU having already spent over €30 billion extra on fossil fuel imports. Iraq is offering huge discounts for crude shipments via Hormuz, indicating severe disruption. Separately, Intel continues its meteoric rise, hitting a new record high and now worth more than Oracle, driven by Apple partnership talks. The Romanian leu hit an all-time low against the euro as the government fell. UK 30-year bond yields hit highest since 1998. The dominant theme is ESCALATING geopolitical risk in the Middle East, with oil supply disruption deepening. A counter-signal is the Pentagon stating recent Iranian attacks do not justify a resumption of war, and the US 'Project Freedom' attempting to open the Strait, but this has not yet de-escalated the situation.