WS #12264

The US-Iran conflict continues to escalate with a sixth consecutive night of US strikes, now expanding to target civilian infrastructure including bridges in Hormozgan province. Iran has retaliated by striking US forces in Syria, Bahrain, Kuwait, and Jordan, widening the theater of conflict. Strait of Hormuz throughput remains severely disrupted, with Asian LNG prices surging to 3.5-month highs and oil prices set for their biggest weekly gain since April. The narrative arc is ESCALATING. Separately, the global tech selloff deepens: Japan's Nikkei fell 4-6%, Kioxia down 16%, and Taiwan Semiconductor on track for its worst day since April 2025, as Chinese startup Moonshot AI's Kimi K3 model challenges US AI dominance. This is corroborated by multiple sources including CNBC, CoinDesk, and Seeking Alpha. A counter-signal emerges: HSBC upgraded Apple to Buy with a $366 target, and Buffett confirmed Berkshire's Alphabet stake was his decision, providing some support to mega-cap tech. China announced an adjustment to battery consumption tax from September 1, which could impact battery and EV stocks. Shein passed its Hong Kong listing hearing at a halved valuation of $40-50B, signaling potential IPO supply. The Iran conflict escalation is the dominant theme, with oil and energy stocks bullish, while airlines, shipping, and consumer stocks face headwinds. The tech selloff is a secondary but significant theme, with semiconductor stocks under pressure but some mega-cap names showing resilience.