WS #12310

The US-Iran conflict has escalated sharply in the last 30 minutes, with multiple sources reporting a seventh consecutive night of US airstrikes on Iranian cities (Qeshm Island, Ahvaz, Bushehr, Bandar Abbas, Sirik) and Iran retaliating with ballistic missiles and drones striking Kuwaiti military facilities and a desalination plant. This marks a significant escalation from the previous steady-state assessment. Oil prices are surging (WTI +3.96%, Brent +4.19%) as hedge funds add bullish oil bets at the fastest pace in a decade. The semiconductor selloff continues, with chip stocks entering bear-market territory and the Nasdaq closing lower for the week. However, TSMC's strong earnings and $100B Arizona expansion provide a counter-narrative to the AI demand concern. Apple briefly leapfrogged Nvidia as the world's most valuable company, and there is rotation into established tech leaders like Microsoft and Meta. Trump threatened tariffs on Canada over wildfire smoke, adding trade uncertainty. The Treasury market posted a weekly gain on inflation optimism, with traders abandoning bets on a July rate hike.