WS #11956

The US-Iran conflict continues to escalate with fresh military actions and diplomatic moves. The UK has officially proscribed Iran's Islamic Revolutionary Guard Corps (IRGC) as a terrorist organization, a significant escalation in Western pressure on Tehran. This is corroborated by multiple sources including BBC, GB News, and social media posts. Meanwhile, IRGC claims to have destroyed a US maritime surveillance radar in Oman using ballistic missiles, and Saudi airstrikes hit Sanaa International Airport, with Houthis vowing retaliation. Strait of Hormuz crossings remain down over 50%, and Iran states the strait remains closed. This is driving risk-off sentiment, with Bitcoin dropping to $63,000 and oil prices expected to rise further. Separately, South Korea's chip sector is in crisis: SK Hynix fell 15.4% (worst day on record), KOSPI slid ~9% triggering a circuit breaker, and Samsung fell nearly 11%. KIS cut its 2Q26 blended DRAM ASP growth estimate to 28.9% QoQ from 50%, signaling systemic risk in memory chips. This could spill over to US-listed Korean ADRs and AI-related names. On the positive side, Meta is expanding its Hyperion AI data center into a $50B+ project, reinforcing the AI infrastructure bull case. Apple is suing OpenAI for allegedly stealing trade secrets, which could pressure OpenAI's valuation and benefit Apple's competitive position. The dominant narrative is ESCALATING US-Iran conflict and ESCALATING Korea chip crisis, while AI demand remains a bullish undercurrent.