WS #12254

The US-Iran conflict continues to escalate, with the US striking five bridges in southern Iran and Iran retaliating by targeting US bases in Kuwait and Qatar. Qatar's defense ministry confirmed it thwarted a missile attack, with explosions heard in Doha. Shipping traffic through the Strait of Hormuz has slumped, and Iran has warned it could target all regional infrastructure if the US strikes its critical facilities. Oil prices remain elevated near $85/barrel (Brent), supporting energy stocks but pressuring airlines and import-dependent economies like India, where the rupee nears 100/USD. The tech selloff deepened, with Japan's Nikkei falling 4% on semiconductor weakness, and Netflix shares dropping 8% after-hours on disappointing guidance. The BIS warned of AI overcapacity risks, adding to pressure on NVDA and other chip stocks. Meanwhile, China's FX regulator announced plans for regular QDII quota allocation, signaling continued capital outflows support. The narrative is ESCALATING for the Iran conflict, while the tech selloff is STABLE but with a contradictory signal from China's AI push and Moonshot's model release.