WS #7031

The US-Iran conflict remains the dominant market narrative, with the situation STABLE but unresolved. Iran's counter-proposal demands sovereignty over the Strait of Hormuz, and its atomic energy chief reiterated that uranium enrichment is non-negotiable. Bloomberg reports that Norden is assuming its ships will be stuck in Hormuz all year, and that fertilizer maker Mosaic is losing out as the conflict roils inputs. China's central bank warned of imported inflation risks from higher oil and commodity prices. On the macro front, US Existing Home Sales rose only 0.2% MoM in April, missing consensus, while the Conference Board Employment Trends Index increased to 105.77. In corporate news, Circle shares rose after Q1 EPS beat with strong USDC growth. AMD hit a 52-week high as Wall Street pivots to broader AI infrastructure. Strategy added 535 BTC. A massive bearish options flow was detected in Nike (NKE), with a whale buying $983K in 42 puts expiring June 5. The hantavirus outbreak on the MV Hondius continues to spread, with new cases in US and French nationals, but remains a low systemic risk. The prevailing macro theme is oil-driven inflation fears and geopolitical uncertainty, with the US-Iran situation showing no signs of de-escalation.