WS #11713

The US-Iran conflict has escalated dramatically, with the ceasefire effectively dead after Trump declared it 'over'. Multiple sources (Guardian, Al Jazeera, AP, BBC, GDELT) report renewed US airstrikes on 90 targets across Iran, including near the Bushehr nuclear plant and a railway bridge to China, and Iranian retaliatory missile launches toward Jordan, Kuwait, Bahrain, and Qatar. Strait of Hormuz traffic is nearly halted per Bloomberg, with only one sanctioned supertanker and one Iranian container ship transiting. This is a major escalation from the previous 'tit-for-tat' phase, now involving direct strikes on nuclear infrastructure and critical trade corridors. Oil prices have spiked, with WTI rebounding from $67 to near $76, and gold climbing to $4,104/oz. The narrative arc is ESCALATING. Separately, Meta plans to begin manufacturing its 'Iris' AI chip in September and double computing capacity to 14 GW next year, a major capex signal for AI infrastructure. Dr. Reddy's shares fell 7% after delaying semaglutide commercial launch due to an API quality issue. PepsiCo reported mixed Q2 results with revenue beat but North America food revenue declining 2%. The KOSPI entered a bear market, down >20% from peak, driven by concentration in Samsung/SK Hynix. The EU is set to greenlight new sanctions on Russia targeting drone component suppliers. Ukrainian drones continue to batter Russian oil facilities, with 14 shadow fleet vessels hit in the Sea of Azov, contributing to Russia's diesel export ban. The Fed minutes showed division over rate hikes, with persistent inflation risks. The 'winning trade of buying chips, selling software' is falling apart per Bloomberg, suggesting a rotation. The Iran escalation counters the prevailing risk-on AI narrative, creating a tug-of-war between geopolitical risk and tech optimism.