WS #11936

The US-Iran conflict continues to escalate sharply, with multiple sources (Al Jazeera, AP, CENTCOM, GDELT, social media) corroborating new US airstrikes on Iranian cities (Bandar Abbas, Sirik, Jask, Qeshm Island) and Iran's IRGC claiming closure of the Strait of Hormuz. The narrative is clearly ESCALATING with no counter-signals (diplomatic intervention, de-escalation) present. Oil prices have reacted: Brent crude above $78/barrel, WTI near $74. Second-order effects: bullish for energy (XOM, CVX, XLE) and bearish for airlines (DAL, UAL), shipping (MATX, ZIM), and consumer discretionary. Additionally, Ukraine reportedly struck a Russian oil depot in Stavropol Krai, adding to energy supply disruption. The OFAC revocation of General License X for Iranian oil transactions adds further supply-side pressure. Japan's PPI surged 7.1% YoY, the highest in 3 years, driven by energy costs and yen weakness, which could lead to BOJ rate hikes and impact global bond markets. The Apple lawsuit against OpenAI (from previous awareness) is not refuted and is carried forward. The Lindsey Graham death story appears to be noise (contradictory reports).