Top stories for the morning: the U.S. is preparing a long blockade of the Strait of Hormuz, TSMC has pulled out of Arm

The U.S. is preparing for a prolonged naval blockade of the Strait of Hormuz and, at the same time, threatening to sanction banks for transactions with Chinese independent refineries that process Iranian oil in an effort to limit Tehran's revenues. These and other topics are covered in our review of key events for the morning of April 29.

US President Donald Trump has instructed his aides to prepare for a prolonged blockade of Iranian ports, unnamed US officials told The Wall Street Journal. The move targets Tehran's financial resources and is seen as a risky attempt to force it to make concessions on its nuclear program, the publication said. In the president's assessment, other options - resuming bombing or withdrawing from the conflict - carry more risks than maintaining the blockade of the Strait of Hormuz, the sources told WSJ.

Iran, in turn, offers a temporary deal - to open the strait in exchange for lifting the blockade of ports, but Washington is not satisfied with such conditions, the agency notes. Negotiations between the parties continue, the risks of a protracted conflict are growing, and the price of Brent crude oil has risen above $111 per barrel.

The US Treasury Department has warned banks about the risk of sanctions for transactions with Chinese independent refineries processing Iranian oil, CNBC reports. According to the agency's estimates, China buys about 90% of Iranian exports. Washington urged financial organizations to strengthen checks on transactions, especially with companies from Shandong Province and participants in supply chains from Asia and the Middle East.

Earlier, a number of Chinese refineries and logistics operators have already fallen under US sanctions, with supplies also going through a "shadow fleet" or masked by other means, the channel points out.

UBS increased its net income by 80% in the first quarter, bringing it to $3 billion and beating analysts' forecasts, CNBC reports. They were expecting $2.8 billion. Underlying profit before taxes amounted to $3.9 billion against the expected $3.2 billion, and the capital adequacy ratio CET1 rose to 14.7%.

The bank also confirmed plans to repurchase $3 billion worth of shares by the second quarter, having already bought back $900 million worth of paper during the period.

Deutsche Bank reported its biggest profit under CEO Christian Zewing: net income totaled €1.91 billion compared to €1.78 billion a year earlier and beat analysts' forecasts, Reuters reports. The bank also improved its investment division's revenue forecast for 2026, expecting stronger growth.

Meanwhile, provisions for credit losses rose to €519 million euros - above expectations - amid macroeconomic uncertainty and currency factors, the agency said.

Taiwan Semiconductor Manufacturing Company has sold its remaining stake in Arm Holdings: the subsidiary sold 1.11 million shares at $207.65, raising about $231 million, Reuters writes. The deal added $174 million to retained earnings, and the company has now fully exited Arm.

TSMC initially invested about $100 million in Arm's IPO in 2023 (at $51 per share) and gradually reduced the stake by selling some securities in 2024, the agency recalls. After the announcement, Arm's shares sagged by almost 8%.

- Japan's broad Topix index jumped 1 percent, while the Nikkei 225 fell 1 percent.

- Hong Kong's Hang Seng Index was up 1.5 percent, while mainland China's CSI 300 Index was up 0.8 percent.

- In South Korea, the Kospi index rose 0.4 percent and the Kosdaq rose 0.1 percent.

- Australia's S&P/ASX 200 was down 0.3 percent.

- Futures on the S&P 500 and Dow Jones Industrial Average added 0.2 percent, while the Nasdaq Composite rose 0.5 percent.

This article was AI-translated and verified by a human editor