WS #11679

The dominant market-moving narrative is the escalation of US-Iran military conflict. After Trump declared the ceasefire over, the US launched a second consecutive day of strikes on Iranian targets in the Strait of Hormuz, with CENTCOM confirming additional strikes to degrade Iran's ability to threaten navigation. Explosions were reported in Chabahar and Bushehr, and Iranian air defenses engaged targets near Bandar Abbas. This escalation reverses the brief de-escalation from the ceasefire and pushes oil prices higher, with Brent crude hitting a two-week high. The conflict is now clearly escalating, with no counter-signals present. Separately, Meta announced a $13B data center in Alberta, Canada, supporting AI infrastructure buildout, which is a positive signal for META and related infrastructure plays. Levi Strauss beat earnings and raised guidance, but shares fell 5% after-hours, suggesting profit-taking or concerns about consumer resilience amid higher gas prices. AZZ also beat estimates and raised guidance, trading higher. MDA Space announced a $712M bought deal offering to fund a ~$920M acquisition of CLS, which weighed on shares. The US consumer borrowing unexpectedly declined for the first time since 2024, a potential warning signal for consumer spending.