WS #11746

The US-Iran conflict continues to escalate sharply, with multiple sources confirming airstrikes on Iranian oil infrastructure in Chabahar, Bushehr, Ahvaz, and Bandar Abbas, and the Strait of Hormuz tanker traffic grinding to a near halt. Only two tankers transited the strait on Thursday, down from an average of 24 per day during the ceasefire. War-risk insurance premiums have risen, and shipowners are pulling back. Oil prices initially surged but have pulled back, with Brent crude around $76.94 and WTI at $72.47, as markets weigh the risk of sustained disruption. The ceasefire is effectively dead, and the narrative remains ESCALATING. Separately, the Fed announced the leadership of five monetary policy task forces, including former central bank chiefs and prominent economists, signaling a potential shift in policy framework. This is a significant development for rate expectations. In corporate news, Micron announced plans to invest over $250 billion in US chipmaking through 2035, sending MU shares up ~8% and boosting the semiconductor sector. OpenAI launched ChatGPT Work and GPT-5.6 models, intensifying enterprise AI competition. AstraZeneca's Wainua drug failed a Phase 3 trial, sending AZN shares down 6.2%. Volkswagen's works council rejected plant closures and set an ultimatum for the CEO, adding uncertainty to VWAGY. Dark pool alerts show large institutional buying in AMZN ($195M), DIS ($106M), QCOM ($115M), and QQQ ($145M). The macro picture is dominated by Middle East tensions, but tech and semiconductor stocks are rallying on AI capex optimism, creating a divergence between energy-sensitive sectors and growth stocks.