WS #11955

The US-Iran conflict continues to escalate with fresh US strikes on Abadan, Iran, and IRGC shooting down a US drone over Bandar Abbas. Saudi airstrikes hit Sanaa International Airport, with Houthis warning retaliation. Strait of Hormuz crossings dropped 52% week-on-week, per Kpler data, and Iran states the strait remains closed. Oil futures rose over 3% Monday, with Brent approaching $79/barrel. This is driving risk-off sentiment across markets, with bitcoin falling over 1% to near $63,000. The narrative is ESCALATING on the military front, with oil supply disruption risks intensifying. Separately, SK Hynix is down 10% premarket, shaking AI sentiment, while TSMC's record Q2 revenue (up 36% YoY) provides a bullish counterweight for AI infrastructure. Cathie Wood's ARK Invest bought SpaceX and Meta, pared AMD and Roku. First Hawaiian to acquire TriCo Bancshares in an all-stock deal valuing TCBK at ~$63.12/share. Lindsey Graham's death triggers scramble to replace him, complicating Senate Republican agenda. The dominant theme is ESCALATING US-Iran conflict driving oil higher and risk-off, while AI demand remains a bullish undercurrent.