US-Iran Tensions Rise, Oil Prices Surge, Tech Layoffs Continue

Summary

Tensions escalated between the US and Iran after US strikes on military targets in response to alleged Iranian attacks on Navy destroyers, though a ceasefire is reportedly still in effect. This has led to a suspension of Project Freedom, a plan to facilitate ship exits from the Strait of Hormuz, causing oil prices to spike to around $95-$100 per barrel, with expectations of sustained high prices due to low inventories. Meanwhile, the US has set a July 4th deadline for Europe to agree to a tariff deal, threatening substantial increases if no agreement is reached. In the tech sector, significant job cuts continue, with 81,000 positions eliminated in Q1 by major companies like Oracle, Amazon, and Microsoft, partly driven by shifts towards AI. Cloudflare, for example, cut 1,100 jobs to embrace an AI-first operating model, yet its stock saw a significant rise. The stock market shows resilience, with futures indicating a higher opening despite recent dips, as equities appear to be looking past geopolitical events. Precious metals are performing well, with gold, silver, platinum, and palladium all showing upward trends.