WS #6734

The Strait of Hormuz situation remains the dominant market theme, with multiple cross-source signals indicating both escalation and de-escalation. A key development is the resumption of 'Project Freedom' as Saudi Arabia and Kuwait lift US military base access restrictions, per WSJ and The Deep Dive, countering the earlier narrative of regional isolation. However, Iran has created a new agency to control shipping in the Strait (AP News, Al Jazeera), and Iran's president seeks to quash divided leadership narrative, while US intelligence indicates Iran can withstand the blockade for months (WaPo). The net effect is mixed: the military access reversal is bullish for oil supply normalization, but the Iranian agency and rejected deal maintain upside risk for oil prices. Separately, the US Treasury sanctioned Iraq's Deputy Oil Minister for helping Iran, adding pressure on oil supply channels. In corporate news, Nvidia's $500M investment in Corning for fiber optics highlights AI infrastructure demand, bullish for GLW and NVDA. SoftBank-Nvidia are in talks to build Japanese AI servers, reinforcing AI capex theme. McDonald's reaffirms plan for ~50,000 restaurants by end of 2027, while DoorDash commits $50M to gas relief program for drivers amid high fuel costs. The macro narrative is stable with no major new developments, but the oil-related signals carry the highest near-term market impact.