WS #11711

The US-Iran conflict continues to escalate, with fresh US strikes on Iran and Iranian retaliation against Kuwait, Qatar, and Bahrain. The Strait of Hormuz traffic has nearly halted, with only a handful of vessels crossing. Brent crude oil prices surged over 5% to around $78/barrel on Wednesday, but have since steadied. Wall Street futures are rebounding as oil retreats, with Nasdaq 100 futures up 1.1%. The IMF has warned that the escalating Middle East conflict could fuel global inflation, raising its 2026 inflation forecast to 4.7% and lowering global growth to 3.0%. Separately, Ukrainian drone strikes continue to batter Russian oil infrastructure, hitting refineries and tankers, exacerbating fuel shortages. In corporate news, AstraZeneca and Ionis Pharmaceuticals saw their stocks plunge after Wainua failed a key Phase 3 trial in ATTR-CM, while competitors Alnylam and BridgeBio surged. Apple's foldable iPhone Ultra has entered mass production, with initial China inventory estimated at around one million units. TSMC saw 28 insiders buy $112K worth of stock in a single day, a bullish signal. The European Parliament voted to introduce a digital euro, targeting a 2029 launch. Temasek said it will prioritize AI over crypto, aiming to increase AI exposure to 15% of portfolio by 2031. The IMF's warning on inflation and the potential for rate hikes is a key macro counter-signal to the risk-on rebound in equities.