Iran tensions, Palantir earnings, Musk's SEC settlement and more in Morning Squawk

• UAE reported being targeted by Iranian missiles while the U.S. claims to have sunk six Iranian boats in Strait of Hormuz; oil prices initially surged but retreated after Maersk successfully transited the strait with military protection
• Palantir's Q1 net income quadrupled year-over-year with U.S. government revenue up 84%; the company raised full-year guidance to $4.2-4.4 billion in adjusted free cash flow
• Amazon's new logistics initiative allowing external retailers to use its supply chain sent UPS and FedEx shares down over 10% and 9% respectively on competition concerns

Market Summary: Iran Tensions, Palantir Earnings, and Major Corporate Moves

Middle East Tensions Impact Markets

U.S.-Iran tensions escalated significantly, affecting global markets. The UAE reported attacks from Iranian missiles and drones, while the U.S. allegedly sank six Iranian boats in the Strait of Hormuz. President Trump issued stern warnings against Iranian aggression. Oil prices initially surged, and the S&P 500 experienced its worst day in over a month Monday. However, crude retreated Tuesday after Maersk successfully navigated the Strait of Hormuz with U.S. military protection. Kalshi traders are betting on potential strait disruptions through at least August.

Palantir Posts Exceptional Growth

Palantir Technologies exceeded Q1 expectations with 85% revenue growth—its fastest since going public in 2020. Net income approximately quadrupled year-over-year, while U.S. government revenue jumped 84% (up from 66% prior quarter). CEO Alex Karp projected the company's U.S. business will double again next year. Full-year guidance was raised to $4.2-4.4 billion in adjusted free cash flow.

Regulatory and Legal Developments

The SEC settled with Elon Musk over securities violations related to his Twitter acquisition, resolving allegations he failed to properly disclose his stake. Separately, Musk's trial against OpenAI continued, with reports showing Musk contacted former OpenAI executive Sam Brockman about a potential settlement days before trial.

Healthcare and Logistics Sector Moves

Novo Nordisk's Wegovy pill gained tens of thousands of users within four months, while Eli Lilly's Foundayo had a more modest launch. Amazon announced a new supply chain service allowing outside businesses to use its logistics network, causing UPS and FedEx shares to plunge over 9-10% on competition concerns.

GameStop made an unsolicited takeover offer for Kohl's, marking another major retail development.