WS #12213

The US-Iran conflict continues to escalate, with new reports of explosions in downtown Dubai, though the Dubai Media Office denies these reports. This follows earlier US missile strikes on Iranian cities and threats to close the Bab el-Mandeb strait. Oil refining margins are surging, and the IMF warns that global oil buffers are running thin after absorbing the initial shock. Separately, the EU has approved the first oral GLP-1 weight management pill (Wegovy), a significant development for obesity drug markets. The semiconductor sector is under pressure from TSMC capex concerns, with fabless and wafer-fab stocks declining. UnitedHealth reported upbeat Q2 earnings, raising its 2026 adjusted EPS guidance. Verizon announced layoffs affecting 3,000 employees. The US is imposing 25% tariffs on some Brazilian imports. The dominant theme is the escalating US-Iran conflict, driving a risk-off tone in equities and benefiting energy stocks. The narrative arc is ESCALATING, with new reports of explosions in Dubai adding to the geopolitical risk premium.