WS #7077

The dominant market narrative remains the escalating U.S.-Iran conflict and its impact on oil prices, with the Strait of Hormuz effectively closed. A key new development is the WSJ report, corroborated by multiple sources, that the UAE has been secretly carrying out attacks on Iran, including a strike on Lavan Island's refinery in April. This represents a significant escalation and expansion of the conflict. Trump has rejected Iran's latest peace offer, prolonging the crisis. On the energy front, the US SPR awarded 53.3 million barrels to companies including Trafigura and Marathon Petroleum to help tame surging prices. Brent crude is at $104.2 (+2.88%) and Murban at $103.6 (+4.84%). Gold is steady as traders track the Hormuz stalemate and inflation risks. The Trump-Xi summit in Beijing (May 13-15) is a key event to watch, with China seeking help to reopen Hormuz and avoid tariff escalation. Trump has invited top CEOs including Elon Musk, Tim Cook, and Larry Fink to join the trip, signaling potential major business deals. Reports also suggest a possible $1 trillion Chinese investment in U.S. factory construction is being negotiated. In corporate news, GM laid off 600 IT workers to hire AI talent, while GameStop shares spiked and dropped after cryptic Roaring Kitty posts. CleanSpark (CLSK) missed Q1 estimates significantly. A large dark pool trade of 940,800 ROST shares ($201.85M) was detected. The U.S.-Iran conflict is clearly escalating with the UAE involvement, and oil supply constraints are intensifying.