WS #6591

The Strait of Hormuz crisis is escalating sharply, with multiple corroborating reports of a cargo vessel struck by an unknown projectile, Iran's Revolutionary Guard threatening a firm response, and Senator Rubio reporting 10 civilian sailors dead. The US has declared Operation Epic Fury over and transitioned to 'Project Freedom', while Rubio stated the US wants Iranians to be able to fight back against the regime. This escalation is driving oil prices lower on the day (WTI -4.36%, Brent -4.11%) as markets price in disruption, but the new casualty report and IRGC threats suggest further upside risk to oil. Separately, several earnings beats are notable: Skyworks Solutions (SWKS) beat estimates significantly (EPS $1.15 vs $1.03), Qorvo (QRVO) crushed estimates (EPS $1.69 vs $1.21), and Crexendo (CXDO) beat. Coinbase announced a 14% workforce reduction (~700 positions), negative for COIN and crypto sentiment. Amazon announced a €15B investment in France, positive for AMZN. Apple is reportedly planning to allow third-party AI models in iOS 27, which could benefit GOOGL and others. The dominant theme remains ESCALATING geopolitical risk in the Middle East, with oil elevated, benefiting energy stocks but pressuring airlines and consumer discretionary. The new Hormuz incident and Iran's authority framework are escalatory, while the US 'Project Freedom' claims progress.