WS #11938

The US-Iran conflict has escalated dramatically over the past 30 minutes, with multiple sources corroborating a new wave of US airstrikes against Iran and Iran's retaliatory missile strikes hitting US facilities in Bahrain, Kuwait, Jordan, Qatar, and Oman. Iran's IRGC claims to have struck Sheikh Isa Air Base in Bahrain, Prince Hassan Air Base in Jordan, and other targets, and has again declared the Strait of Hormuz closed. Oil prices surged 4% in early Asian trading, with Brent crude rising to $79.50 and WTI to $74.20, as the market prices in a sustained disruption to global oil flows. The US CENTCOM has stated it completed a new wave of offensive strikes against Iran and is postured to ensure freedom of navigation. The narrative is clearly ESCALATING, with no counter-signals present. Separately, South Korea's KOSPI tumbled over 5% and trading was briefly halted, driven by a tech rout linked to the SK Hynix blockbuster listing and broader geopolitical risk. Gold slid over 1% to $4,072 as oil's surge revived expectations of higher interest rates to combat inflation. The Fed's monetary policy report noted inflation 'stepped up further this spring' due to tariffs, energy costs, and AI buildout. Markets are now focused on Fed Chair Warsh's first semiannual testimony and US CPI data this week, which will be critical for rate expectations. The carry-forward from prior awareness includes the ongoing US-Iran escalation, the hawkish Fed repricing, and the KOSPI tech rout.