WS #12334

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, Kuwait, and Jordan. Iran's IRGC released drone strike footage on a Thai-flagged oil tanker in the Strait of Hormuz, marking the first time Iran has officially published video of such strikes on commercial vessels. The Strait of Hormuz remains effectively closed, with Iran claiming to have stopped four ships and two tankers hitting mines (CENTCOM denies the tanker claims). Kuwaiti air defence systems are actively intercepting Iranian missiles and drones, with a desalination facility damaged. US service members were injured in Iranian strikes in the Gulf, and the US launched ATACMS from Kuwait into Iran. The conflict is driving oil prices higher 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. The tech selloff continues with semiconductors entering bear territory on AI worries, while gold holds near $4,000. The macro narrative remains dominated by geopolitical risk and inflation fears, with the oil spike as the primary market mover.