WS #12078

The US-Iran conflict has escalated sharply with Iran launching a missile strike on Bahrain and reports of air defense malfunctions. The US has confirmed its naval blockade is in effect with over 20 warships. Iran's deputy foreign minister stated Iran will never negotiate, and Iran declared intent to control the Strait of Hormuz. A bulk carrier partially sank near the Strait. Senate Democrats blocked the NDAA defense bill over the Iran war. On the corporate side, IBM's disastrous preliminary Q2 results (stock down ~24%) dominate tech headlines, with an investigation launched for securities fraud. Citigroup dropped 5.3% after comments on investments. Aehr Test Systems reported strong Q4 results and issued FY27 guidance above estimates. New York imposed a one-year moratorium on large data centers. The Writers Guild sued to block the Warner Bros-Paramount merger. Lucid denied bankruptcy rumors after stock hit record low. Okta rose 11% to new high. The US Treasury deficit ballooned to $120B in June. Goldman raised $10B from bond sale. The dominant narrative is the US-Iran escalation, which is ESCALATING with new military actions and political developments. The counter-signal of a potential Iraq-Syria pipeline bypassing Hormuz is still present but not yet materializing.