WS #12373

The US-Iran conflict continues to escalate, with multiple sources confirming two US service members killed and one missing in an Iranian missile and drone attack on a base in Jordan. Iranian state media reports Iranian forces are firing on ships in the Strait of Hormuz, and Iran threatens to bomb Dubai airport. US officials say Iran's enhanced targeting capability suggests possible intelligence support from China or Russia. The US has drafted a nuclear cooperation agreement with Saudi Arabia allowing uranium enrichment. Germany raises terrorism threat level to 'high'. Separately, Trump threatens to increase tariffs on Canada over wildfire smoke pollution. In AI, the Kimi K3 model from China's Moonshot AI is causing concern on Wall Street, with Nasdaq down ~1% and semiconductor stocks under pressure. The dominant theme is ESCALATING US-Iran conflict with no de-escalation signals, while AI competition and trade tensions add to market uncertainty.