WS #12298

The US-Iran conflict continues to escalate, with new developments including an IRGC drone strike on a tanker in the Strait of Hormuz, US missiles striking an oil tanker at Iran's Kharg Island for the second time in two days, and Iran launching fresh attacks after a sixth day of US strikes. Only 10 ships have passed through the Strait in the last 24 hours (less than 17% of normal traffic), and oil prices have surged: WTI near $82.15 (up ~4%), Brent above $87.5. This is a clear escalation of the previous narrative. Meanwhile, the AI-driven tech selloff is intensifying, with Moonshot AI's Kimi K3 model triggering DeepSeek-style flashbacks, causing semiconductor and AI-related stocks to fall globally. However, there are some counter-signals: SK Hynix's chairman urged investors to just hold, and China's Xi Jinping launched a 29-nation AI bloc, which could be bullish for US AI stocks like NVDA and PLTR. Apple has overtaken Nvidia as the world's most valuable company, a MAG7 carve-out signal. Additionally, the EU proposed slowing down cuts to carbon emissions for businesses, which could ease regulatory pressure on European industrials. The Boeing FAA approval to resume issuing airworthiness certificates for 737 MAX and 787 is a positive catalyst for BA. The dominant themes are the US-Iran conflict (ESCALATING) and the AI selloff (ESCALATING), with the Boeing and EU climate news as moderate positives.