WS #6931

The dominant narrative remains the Iran-US tensions and Strait of Hormuz situation, which is ESCALATING. New developments include a report that US forces struck two empty Iranian oil tankers (Reuters, via Bluesky), and Iran's threat to control internet cables in the Strait of Hormuz (Bluesky). These events increase the risk of supply disruption, supporting oil prices. Saudi Aramco reported higher profits despite the Iran war, as its east-west pipeline allows circumvention of the Strait of Hormuz (FT Markets). This confirms the bullish oil thesis. Meanwhile, a report of a secret Israeli military base in Iraq (Bluesky) adds a new flashpoint. The semiconductor sector added $3.8 trillion in market cap as AI demand broadens (Investing.com), a positive signal for tech. However, a Pentagon AI push faces human problems as soldiers struggle to keep pace (Benzinga), which may temper AI enthusiasm. The hantavirus outbreak on a cruise ship reaching Tenerife is a health story but not market-moving. Overall, the key signal is the escalation in the Strait of Hormuz, which is bullish for energy and bearish for consumer/airlines.