WS #11729

The US-Iran conflict is ESCALATING sharply. After Trump declared the truce 'over', the US launched over 170 strikes on Iranian targets, and Iran retaliated with ballistic missiles at US bases in Jordan and Gulf states. The Strait of Hormuz remains disrupted, with traffic slumping. Oil prices initially spiked but have edged lower as traders assess the renewed hostilities, with WTI down ~1.7% to $72.35 and Brent down ~1.4% to $76.93. This counters the prior narrative of de-escalation and a potential deal. Meanwhile, the tech/AI narrative is strong: Micron surged 7% on a $250B US investment plan, SK Hynix is set for a massive ~$28B Nasdaq IPO, and semiconductor stocks are broadly rallying. Microsoft's AI boom is colliding with climate goals (emissions up 25%), but this is a secondary concern. The macro picture shows gold up 1.3%, silver up 3.6%, and the US 30-year bond auction set to draw the highest yield in 20 years. Jobless claims declined to 215,000. PepsiCo fell 5% on an earnings miss. Overall, the dominant theme is the re-escalation of US-Iran hostilities, which is bearish for risk assets and bullish for energy and gold, but the tech sector is showing resilience and positive catalysts.