WS #6898

The dominant narrative remains the escalating Israel-Iran conflict and Strait of Hormuz blockade, with no de-escalation signals in this window. Multiple sources corroborate: US airstrikes hit Iranian oil tankers attempting to break the naval blockade (Central Command), and the Strait of Hormuz traffic has collapsed. Oil prices are surging (Brent at $101.3, WTI at $95.42). A potential counter-signal: Apple and Intel have reached a preliminary chip manufacturing deal, which could boost Intel's foundry business and signal US semiconductor reshoring progress. The Labour Party leadership challenge in the UK is a political development but has limited direct US market impact. Additionally, US employers added a stronger-than-expected 115,000 jobs in April, defying recession fears and supporting a resilient labor market narrative. Tesla recalls over 200,000 vehicles for camera failure, a negative for TSLA. IAG Q1 profit jumped 77% despite rising fuel costs, indicating airline resilience but caution on future quarters. China claims Hantavirus may have originated in the US, a geopolitical escalation that could impact biotech and trade relations.