WS #11704

The US-Iran conflict continues to escalate, with a second consecutive night of US strikes on Iran and Iranian retaliation targeting US bases in Bahrain and Kuwait. The Strait of Hormuz remains a critical flashpoint, with Iran threatening to close it. Oil prices remain elevated, with Brent near $79/barrel, though some reports show a slight pullback to $77.63. The IMF, IEA, World Bank, and WTO issued a joint statement noting global economic resilience but warning of uneven impacts and urging a resolution to reopen the Strait of Hormuz. China's June CPI rose 1.0% YoY (in line with estimates) and PPI rose 4.1% YoY, while vehicle sales fell 3.2% YoY, indicating persistent economic weakness. China's semiconductor index surged 7% and the STAR 50 index rose over 6%, suggesting a tech-led rally in Chinese markets. Micron raised guidance on surging memory prices, a positive signal for the semiconductor sector. The Apple-Broadcom $30B chip deal is being widely covered in international media, reinforcing its significance. The narrative is ESCALATING on the US-Iran front, with oil prices, inflation expectations, and rate hike probabilities all affected. The China tech rally and Micron guidance provide a partial offset to macro headwinds.