Hormuz attacks and Apache shootdown hit oil, defense stocks

The US Navy disabled three merchant vessels in the Strait of Hormuz this week, killing three Indian mariners aboard the Settebello. Central Command said it struck the ships after they violated a naval blockade imposed April 13. One of the vessels, the Guinea-Bissau-flagged tanker Jalveer, had 20 Indians aboard.

India summoned US Charge d'Affaires Jason Meek to protest the Settebello attack. Foreign Minister S. Jaishankar later spoke with Secretary of State Marco Rubio, posting on X that “such lethal actions against commercial shipping are not justified.” Rubio had called India “one of our most important strategic partners in the world” on May 24. The strikes on Indian-crewed ships test that framing.

The waterway carries about 20% of global seaborne crude. Iran has shut passage in both directions. Shipping insurers have already raised war-risk premiums for vessels transiting the Gulf.

During the same operations, an Iranian drone brought down a US Army Apache helicopter built by Boeing. Boeing markets the Apache as the “backbone” of the Army’s attack helicopter fleet. India also operates Apaches. A single shootdown does not threaten Boeing's roughly $60 billion defense backlog. It does raise questions about the platform's vulnerability against cheap drones, a dynamic that could slow future export sales or prompt development of countermeasures. Boeing's current Alpha Score is 37 out of 100, a Mixed rating that reflects the stock's broader operational and balance-sheet challenges. BA stock page

China's Xi Jinping visited North Korea this week for the first time in seven years, coinciding with the 65th anniversary of their 1961 mutual defense treaty. Beijing accounts for more than 90% of North Korea's international trade. The visit signals China's intent to remain Pyongyang's most critical backer, even as Russia and North Korea deepen military ties, including reports of North Koreans fighting in Ukraine.

A federal judge in Boston struck down the $100,000 fee Trump imposed on new H-1B visas, calling it an unlawful tax Congress never authorized. The Trump administration said it will appeal. The ruling removes a cost headwind for tech companies that rely on the program for skilled foreign workers, particularly Indian IT professionals.

The G7 summit begins next week in France. Prime Minister Modi may attend. Iranian Foreign Minister Abbas Araghchi on Friday hinted that a peace deal – the Islamabad Memorandum of Understanding – is nearing finalization, a statement reposted by Trump. Araghchi urged media to refrain from speculation on its content.