WS #12142

The US-Iran conflict is escalating sharply, with new US airstrikes on Iranian energy infrastructure and Iranian ballistic missile attacks on US bases in Kuwait, breaking the fragile ceasefire. Trump threatens intensified strikes unless Iran negotiates, while Iran states no plans to negotiate. Oil prices are rising, with Brent near $85 and WTI near $79, and the IMO urges shippers not to risk Strait of Hormuz transits. This escalation counters any de-escalation narrative and pushes oil prices higher, benefiting energy stocks but pressuring airlines and consumer sectors. Separately, Stripe and Advent International have offered $60.50/share (~$53B) to acquire PayPal, sending PYPL up ~14%. Anthropic has started IPO investor meetings, aiming for an October IPO. Fed Governor Lisa Cook signaled readiness to act on inflation, with risks tilted to the upside due to AI investment and supply shocks. SpaceX shares fell below its $135 IPO price, now at $132.62, down 41% from its peak. ASML raised its 2026 outlook and plans a 30% capacity increase for Low-NA EUV in 2027, supporting semiconductor equipment demand. Apple hit an all-time high on strong iPhone market share and China AI approval. The India-UK trade pact took effect, cutting tariffs. Conagra's results signal more pain for the food industry. The US-Iran escalation is the dominant theme, with oil and defense stocks likely to benefit while tech and consumer stocks face headwinds.