WS #12165

The US-Iran conflict continues to escalate with new airstrikes near a children's cancer hospital in Ahvaz and a US strike disabling a tanker heading to Kharg Island, intensifying the Strait of Hormuz blockade. This is corroborated by multiple sources (Sight Magazine, FT, Bloomberg, and social media posts). Oil prices are extending gains, with Brent crude above $85 and WTI above $82. A key counter-signal emerged: Trump dropped the proposed 20% Hormuz transit fee after Gulf intervention, which may partially offset the bullish oil thesis by reducing a direct cost on shipping. Wheat futures are surging due to the Russia-Ukraine war disrupting Black Sea exports. On the macro front, US PPI data came in cool (-0.3% MoM vs flat expected), supporting a modest market rally and reducing rate hike expectations. Fed Chair Warsh pushed back on AI stoking inflation. In corporate news, Apple's stock rose 4% nearing a $5 trillion valuation, while PayPal surged 17% on acquisition rumors by Stripe and Advent. SpaceX shares fell below IPO price, down 41% from peak. Cintas reported a Q4 beat. Dell fell 9.8% on AI overcapacity fears as Meta plans surplus capacity leasing. The narrative arc is ESCALATING for US-Iran conflict, with no de-escalation signals.