WS #12272

The US-Iran conflict continues to escalate, with US strikes hitting Iran's Chabahar port and Iran retaliating against Kuwaiti infrastructure, while oil traffic through the Strait of Hormuz remains severely disrupted at less than 10% of normal. Brent crude jumped nearly 2% to $86/barrel, up ~13% for the week, as the twin chokepoint risks (Hormuz and Bab al-Mandab) persist. However, a potential counter-signal emerges: Saudi PIF is set to secure EU approval for its $55B acquisition of Electronic Arts, and Chevron's Iraq pipeline deal offers a long-term bypass of Hormuz. The tech selloff deepens, driven by a 'Kimi moment' as China's Moonshot AI releases open-source Kimi K3 model that beats frontier US models, triggering a broad semiconductor rout. Netflix dropped 11%+ premarket on weak guidance, while Apple was upgraded to Buy by HSBC with a $366 target, citing a strong cycle ahead and agentic AI, making it a notable outlier. UK political shift: Andy Burnham becomes PM on Monday, with green groups urging him to block new North Sea drilling. The dominant themes are an ESCALATING geopolitical crisis in the Middle East driving oil prices higher, and an ESCALATING tech selloff led by AI capex fatigue and Chinese AI competition, with pockets of strength in Apple and energy stocks.