WS #10704

The Strait of Hormuz crisis continues to escalate, with a new report of Iran attacking a Singapore-flagged cargo ship in the Strait, corroborated by multiple sources including a Bloomberg report on US Army bases hosting critical minerals plants as part of an onshoring push. The Pentagon has reached agreements with Realloys, Titan Mining, Ioneer, and Energy Exploration Technologies to build critical minerals plants, signaling a strategic response to supply chain vulnerabilities. Meanwhile, the macro inflation narrative is shifting: May PCE core inflation came in at 3.4%, its highest since October 2023, but Chicago Fed President Goolsbee noted some improvement in services inflation. The Fed's favored gauge rose less than estimated, and markets now expect a potential rate hike in September. In corporate news, Micron Technology (MU) continues to surge, with Citigroup raising its price target to $1400 and the stock becoming the most traded in the US with daily turnover surpassing $70 billion. A tech rotation is underway, with money flowing from mega-caps into broader semis and industrials. Ares Management again capped withdrawals at its flagship private credit fund after redemption requests rose to 14.4%, signaling ongoing stress in private credit markets. Notion is shutting down Notion Mail as users shift to AI agents. Russia's NORSI refinery was halted after a drone attack, and more than 20 Russian regions now have official gasoline sales limits amid escalating Ukrainian drone strikes on oil refineries.