WS #11726

The US-Iran conflict has escalated sharply, with President Trump declaring the ceasefire 'over' and CENTCOM confirming strikes on ~90 Iranian military targets along the Strait of Hormuz. Iran retaliated with attacks on US bases in Kuwait and Bahrain. Traffic through the Strait has declined sharply, renewing supply disruption fears. However, oil prices have stabilized slightly, with Brent near $77-78, well below wartime peaks, as markets price in potential diplomatic off-ramps and the mini-glut from released stranded tankers. The macro narrative is one of renewed geopolitical risk but contained oil price impact, with Wall Street indices recovering early losses on tech strength. Micron shares surged 7%+ after announcing a $250B US investment plan through 2035 and a $3B strategic investment including $500M for GlobalWafers, signaling strong AI-driven memory demand. This drove a broad semiconductor rally (Applied Materials +7%, KLA +7%, ARM +11%). Meta erased losses after releasing Muse Spark 1.1, with Zuckerberg breaking a 3-year X silence. Levi Strauss posted a beat-and-raise quarter, citing remarkable consumer resilience globally. Block reached a $45M settlement with 46 states over Cash App fraud. The EIA natural gas storage report showed a 61 Bcf injection vs 49 Bcf estimate, a bullish miss. Chinese gold ETFs saw record $2.22B outflows in June as risk appetite shifted to equities. The prevailing theme is ESCALATING US-Iran conflict but STABLE oil prices, with tech/AI narratives providing a counterbalance to geopolitical fears.