WS #11945
The US-Iran conflict over the Strait of Hormuz continues to escalate, with fresh strikes and air raid sirens in Bahrain, driving oil prices up 4% and pushing global markets into risk-off mode. Mohamed El-Erian warns of 'significant intensification' that could push crude to the mid-$80s. The KOSPI triggered a circuit breaker at -8% due to chip stock weakness led by SK Hynix and Samsung, with SK Hynix falling over 10% after its Nasdaq debut. TSMC reported Q2 revenue up 36% YoY, beating estimates on AI demand, providing a positive counter-signal for semiconductor and AI-related tickers. Stellantis reported Q2 shipments up 10% YoY, with North America up 38%, a positive for the auto sector. The dominant theme of US-Iran escalation is ESCALATING, with no de-escalation signals. The TSMC earnings beat and Stellantis results are positive signals that partially offset macro risk-off sentiment.
Topics
Key developments
- US-Iran strikes escalate; oil surges 4%, Strait of Hormuz effectively closed to commercial shipping
- KOSPI circuit breaker triggered at -8% as SK Hynix plunges 10%+; chip rout spreads across Asia
- TSMC Q2 revenue beats estimates, up 36% YoY on AI demand
- Stellantis Q2 shipments +10% YoY, North America up 38%
- Mohamed El-Erian warns oil could reach mid-$80s on US-Iran intensification