WS #12228

The dominant signal in this window is the escalation of the US-Iran conflict, with multiple sources reporting new US airstrikes on Iranian cities (Ahvaz, Bandar Abbas, Bushehr, Iranshahr) and Iran's threat to close the Bab el-Mandeb Strait via Houthi allies. This builds on the existing Strait of Hormuz crisis and represents an ESCALATING narrative. The UN and IMO condemned attacks on shipping in the Strait of Hormuz, and Iran's chief negotiator urged massive funeral turnout to avenge Khameneh's death. Separately, earnings season produced mixed signals: Intuitive Surgical (ISRG) beat estimates strongly (EPS $2.80 vs $2.50, revenue beat), while Netflix (NFLX) reported a slight revenue miss and weak Q3 guidance, sending shares down ~5% after hours. Alcoa (AA) missed EPS estimates. In tech, Alphabet (GOOGL) shares fell on reports of Gemini 3.5 Pro delays, and the broader tech selloff continued with the Nasdaq leading losses. New York's AI data center moratorium and Trump's criticism add regulatory uncertainty. SpaceX stock closed below its IPO price for the first time. Cybersecurity stocks rallied on IBM's comments about AI-driven cyber fears. The Atlanta Fed's GDPNow was revised up to 1.7% for Q2. Oil prices remain elevated amid the conflict, with Europe buying record LNG from Russia.