WS #8414

The US-Iran conflict continues to escalate with fresh airstrikes and naval skirmishes near the Strait of Hormuz, directly contradicting any ceasefire hopes. Multiple sources (CNBC, Bloomberg, Al Jazeera, social media) report that Iran launched a ballistic missile toward Kuwait (intercepted by Kuwaiti forces) and drones near Hormuz, while CENTCOM confirmed ceasefire violations. IRGC claims it is controlling the Strait and stopped vessels. This has pushed Brent crude toward $97/barrel (up 2.9%) and WTI above $90, while S&P 500 futures dipped 0.2%. Gold fell to a two-month low as oil and dollar strength reduced bullion's appeal. Crypto saw nearly $900M in long liquidations, with Bitcoin falling to its lowest since April 13. The narrative is clearly ESCALATING, not de-escalating. Separately, a major M&A deal emerged: Fertitta Entertainment agreed to acquire Caesars Entertainment for $17.6B (all-cash, $31/share, 49% premium), causing CZR trading halt. Several earnings reports provided stock-specific signals: Best Buy (BBY) beat Q1 estimates and affirmed guidance; Burlington Stores (BURL) beat and raised guidance; Build-A-Bear (BBW) beat EPS but missed revenue and guided lower; Photronics (PLAB) missed estimates. IBM announced $10B+ investment in quantum computing over 5 years. CVS Caremark will cover Eli Lilly's Zepbound and Foundayo, expanding GLP-1 access. The dominant macro theme remains the Iran conflict and its inflationary oil shock, which is bearish for risk assets and bullish for energy.