WS #7614

The dominant narrative remains the Strait of Hormuz crisis and its inflationary oil price implications, with Brent crude scenarios reaching $180/barrel being discussed by analysts. The situation is escalating: Iran asserts control over the strait, and the US is now shipping oil to Australia as a workaround. Italy's Meloni is seeking EU budget flexibility over energy costs, indicating growing economic strain in Europe. A potential diplomatic off-ramp has emerged: Pakistan has reportedly shared a revised Iranian proposal with the US to end the conflict, which could act as a counter-signal to the bearish oil thesis if confirmed. Separately, the global bond rout continues, with Morgan Stanley's Wilson warning that the stock rally is at risk from rising yields. In company-specific news, Ryanair reported a 40% profit jump but warned of future fare rises due to jet fuel uncertainty, and Li Auto led Chinese EV stocks lower after price cuts. Bitcoin Depot, the world's largest Bitcoin ATM operator, filed for Chapter 11 bankruptcy, a negative signal for the crypto sector. Tesla faces fresh pressure after two robotaxi crashes in Austin. The US let its Russian oil waiver expire again, tightening supply further.