WS #7733

The dominant market theme remains the escalating US-Iran military confrontation, which is now showing signs of DE-ESCALATION. President Trump threatened a 'big hit' if no deal is reached in 'two or three days,' but also revealed he was 'an hour away' from ordering a strike before pulling back, suggesting a potential diplomatic off-ramp. Vice President Vance stated the situation 'will not last forever' but no troop deployment decision has been made. The UK has lifted restrictions on Russian diesel and jet fuel imports processed through third countries, acting as a counter-signal to the oil supply crisis. Separately, the 10-year Treasury yield hit a record 5.18%, the highest since 2007, pressuring growth stocks. Google I/O continues to dominate tech news with the launch of a $100/month AI Ultra plan and SynthID watermarking adoption by OpenAI and Nvidia. Berkshire Hathaway's new stake in Macy's is driving optimism in the retail sector. The Iran escalation narrative is DE-ESCALATING, while the bond yield spike is a bearish signal for equities.