We started fighting each other in our actions, but we still don't want to escalate our stance. The early morning firefight incident can be simply described as three US warships crossing the Strait of Hormuz and heading towards the Gulf of Oman, being intercepted and detailed by Iran. The US military destroyed the incoming weapons and struck the corresponding Iranian military facilities. Iran's statement is similar, with the difference being that it was not due to the active interception of US warships crossing the Strait of Hormuz, but rather a counterattack by the US military after striking two Iranian oil tankers. It can be seen from the statements of both sides 1. The US side is consistent in saying that it "does not seek to escalate the situation", including Trump's 7 o'clock message that the ceasefire is still in place, which is just a "small punishment". 2. Iran has not responded much regarding the firing. Iranian state media reported that the situation has "returned to normal" and there have been no reports of civilian casualties so far The statements of both sides have limited the scope of firing and mutual counterattacks, preserving the possibility of continuing negotiations. This also made the market fluctuations slightly calm in the morning. Actually, my personal curiosity is that according to reports, three warships crossed the Strait of Hormuz and headed towards the Gulf of Oman, which should have departed from the Persian Gulf. But after the war between the United States and Iran at the end of February, the US military basically withdrew its warships in the Persian Gulf to the Arabian Sea, and then Iran blocked the strait, basically making it impossible to pass through. When did these three US warships enter the Persian Gulf? But it can also be seen that these three warships are crossing the strait to test the strength of Iran's blockade in the Strait of Hormuz. They do not take the initiative to strike, but if they can destroy all attacks during passage, it can further undermine Iran's blockade. According to reports, the French Charles de Gaulle aircraft carrier battle group has arrived in the Red Sea and is also interested in conducting escort operations. I feel that the current strategy of the United States is not to actively expand the situation or escalate. But there will be friction, constant exploration, and consumption at the local level, gradually knocking out some of the opponent's trump cards, which is a bit of a smart version of "playing to promote negotiation". See if there is better or worse news ahead. For the market, as the earnings season slowly passes and there has been a significant increase over the past month, the momentum from fundamentals may weaken, and the market has entered a period of volatile adjustment. Next, we will pay attention to the situation in Iran for further developments Tonight's non farm payroll and next week's CPI data for April China US summit. This article is sponsored by @ bitget_zh, titled 'Bitget Buying US Stocks: Instant Entry, Smooth Trading'