WS #11943

The US-Iran military conflict continues to escalate with new attacks and casualties. A drone strike on Port Shuaiba, Kuwait killed six US soldiers and wounded dozens, marking one of the costliest attacks on American personnel. Iran launched attacks on US bases in Bahrain and Kuwait, with the US Navy 5th Fleet headquarters in Bahrain reporting direct hits. The Pentagon affirmed readiness to keep sea lanes open, but oil prices surged 4% with WTI at $74.46 and Brent at $79.21, reflecting supply fears over the Strait of Hormuz. The USD index held above 101.00 on safe-haven demand. Retail investors are pulling back from stocks at the slowest pace in over six years, while US stock futures slipped. Separately, Japan is establishing its first centralized intelligence agency since WWII in partnership with the US, Australia, and Germany. Ukraine continued drone strikes on Russian oil depots and military targets. The dominant theme of US-Iran escalation is ESCALATING with no de-escalation signals.