WS #11714

The US-Iran conflict remains the dominant market narrative, with the ceasefire fully collapsed and both sides trading strikes. Overnight, the US struck 90 Iranian targets including a railway bridge to China, while Iran retaliated with missile and drone attacks on US bases in Kuwait and Bahrain. Strait of Hormuz traffic is gradually recovering to ~50% of pre-war levels per IRGC claims, but oil exporters are building resilience. Brent crude is edging higher again after its biggest advance since May, with analysts warning prices could revisit early-2026 highs (~$110) if tensions persist. Asian refiners are better prepared this time. The narrative arc is ESCALATING, with no de-escalation signals in this window. Separately, SK Hynix's US listing on Nasdaq is a major event for the semiconductor sector. The deal is reportedly >7x covered at ~$28-29B, and the company's market cap is ~$1 trillion. This comes as the KOSPI has entered a bear market (-22-24% from peak), driven by retail concentration in Samsung/SK Hynix levered ETFs. Meta plans to begin manufacturing its 'Iris' AI chip in September and double computing capacity to 14 GW next year, a bullish signal for custom ASIC supply chains (AVGO). KeyBanc downgraded Salesforce (CRM) to Sector Weight citing slow Agentforce adoption. PepsiCo (PEP) reported mixed Q2 results with North America food revenue declining 2%, but international strength drove an earnings beat. Rackspace Technology (RXT) slashed FY26 guidance and announced a capital raise, with Palantir naming it a preferred partner in regulated markets. Byrna Technologies (BYRN) missed Q2 estimates significantly. Ionis/AstraZeneca's Phase 3 eplontersen failed in ATTR-CM. Russia introduced a ban on diesel exports until July 31 after Ukrainian drone attacks on refineries triggered shortages. Volkswagen board is reportedly weighing German plant closures, with up to 100,000 jobs at risk amid union resistance.