WS #12333

The US-Iran conflict continues to ESCALATE sharply, with the seventh consecutive night of US strikes on Iran and Iran retaliating by targeting US assets in Bahrain and launching ballistic missiles at a US base in Saudi Arabia. Iran claims to have shot down a US MQ-9 Reaper drone and reports two oil tankers hit mines in the Strait of Hormuz, though CENTCOM denies the tanker claims. The Strait of Hormuz is effectively closed, with Iran declaring it completely shut after blocking four ships. This is driving oil prices higher (Brent at $88.15, up 3.8%) and reinforcing the energy supply crisis. Separately, Apple overtook Nvidia to become the world's most valuable company ($4.88T vs $4.86T), as investors rotate from AI infrastructure plays to companies that can monetize AI through services and hardware upgrades. This marks a significant shift in the AI trade narrative. Trump threatened new tariffs on Canada over wildfire smoke, adding trade uncertainty. The tech selloff continues with semiconductors under pressure, while gold holds near $4,010. The macro narrative remains dominated by geopolitical risk and inflation fears, with the oil spike as the primary market mover.