WS #10717

The dominant theme in this window is the continued de-escalation of the Strait of Hormuz crisis, with crude oil prices falling (WTI near $69.81, Brent below $77) as Iran/Hormuz risk eases, though gasoline prices remain elevated at $3.85-$3.93, creating a crude-policy spread. A new development: Iran struck a ship passing through the Strait of Hormuz, undermining reopening efforts, but this appears to be a minor incident not reversing the broader de-escalation trend. Separately, OpenAI is reportedly considering pausing its IPO pursuit until 2027 due to investor sentiment concerns, which could impact the AI sector narrative. Robinhood closed a $2.2 billion convertible note offering with zero coupon, enhancing strategic flexibility. The Pentagon updated its targeting doctrine to allow greater AI role in military targeting, a positive for defense AI contractors. Venezuela earthquake economic losses estimated at 1-7% of GDP, with IMF support announced. The S&P 500 is at a critical support level, with a break lower signaling potential further losses. Overall, the macro narrative is stable with a slight bearish tilt on equities, while energy markets show a crude-oil bearish but gasoline-bullish divergence.