WS #12112

The US-Iran conflict continues to escalate, with the US reinstating a naval blockade on Iranian ports and strikes entering a fourth consecutive night. Trump warned that next week US forces could target Iranian power plants and bridges, signaling further escalation. Iran retaliated with drone strikes on US logistics warehouses in Kuwait and attacks on Bahrain and Jordan. Oil prices remain elevated with Brent at $85/barrel. Separately, Ukraine expanded its drone campaign to the Black Sea, hitting 20 Russian vessels, adding to global energy supply disruption. In corporate news, IBM stock cratered 25% after a Q2 earnings warning, its worst day on record, as clients shifted spending toward hardware. Stripe and Advent offered $53B to acquire PayPal at $60.50/share, sending PYPL up 16% premarket. ASML raised its FY26 outlook again, driven by AI demand, with shares up 4% premarket. Aehr Test Systems jumped 30% on record bookings. M&T Bank beat Q2 estimates with EPS of $5.32. Apple registered its AI service with China's cyberspace regulator, and Alibaba's Qwen will be integrated into Apple Intelligence for China. The dominant theme is the escalating Iran conflict and its impact on energy markets, with second-order effects on airlines, refiners, and consumer stocks. The narrative is ESCALATING.