WS #10705

The Strait of Hormuz crisis escalates further: the UN has paused its evacuation plan after a vessel was struck by a projectile off Oman, corroborated by multiple sources including a Bluesky post and a EuropeSays article. This marks a significant escalation from the previous situation awareness. In response, Denmark's parliament has approved a military contribution to the Strait of Hormuz mission, a counter-signal that may dampen some bearish energy sentiment but does not resolve the immediate disruption. Fed's Williams delivered a series of dovish-leaning remarks, pushing back the 2% inflation target to 2028 and noting that Middle East war disruptions, if resolved, would lower inflation pressure. He also reiterated that monetary policy is 'well positioned' and sees the US economy growing at 2.25%. This suggests the Fed is in a wait-and-see mode, which may support risk assets but also keeps rate cut expectations at bay. In corporate news, Apple and Microsoft announced significant price increases on hardware (Xbox consoles up $100-$150, Apple products also rising), citing soaring memory and storage costs driven by AI infrastructure demand. This is a direct pass-through of AI capex to consumers and could pressure consumer discretionary stocks while benefiting memory/storage companies. Additionally, a fire broke out at Delta Air Lines' refinery in Pennsylvania, which could impact jet fuel costs and airline margins. Palantir is experiencing its worst meltdown since 2021, dropping over 30% in June, with Michael Burry's bearish thesis drawing blood. This is a significant MAG7-adjacent signal contradicting the broader tech narrative. Finally, the Pentagon reached agreements with Realloys, Titan Mining, Ioneer, and Energy Exploration Technologies to build critical minerals plants on US Army bases, a strategic onshoring move that counters supply chain vulnerabilities highlighted by the Hormuz crisis.