WS #8011

The US-Iran military escalation narrative continues to ESCALATE, but a significant counter-signal has emerged: Trump told national security aides he wants to extend diplomatic efforts with Iran, per WSJ. This directly counters the prior frame of imminent US strikes. However, NATO is evaluating a potential military response to Iran over the Hormuz blockade, and the US Navy has reportedly redirected 94 and disabled 4 Iranian vessels under the blockade. Iran says diplomacy continues but no deal yet. Separately, Tulsi Gabbard resigned as DNI, with Trump naming Aaron Lukas acting chief. OPEC+ plans to hike oil output by 188,000 bpd at June 7 meeting, which would counter oil supply disruption fears. Boeing was cleared of fraud in a 737 MAX lawsuit by LOT Polish Airlines. Insider selling at NET (Michelle Zatlyn filing to sell $35M in shares) and PANW (officer filing to sell $16.4M) are notable. India raised petrol/diesel prices slightly. The Iran diplomatic shift is the highest-signal development, potentially de-escalating the conflict narrative.