WS #12383

The US-Iran conflict continues to escalate with new airstrikes launched by US forces against Iran, as confirmed by CENTCOM. Iran's supreme leader warns of 'unforgettable lessons' if US attacks continue. Oil prices are rising, with Brent crude near $86/barrel and WTI near $81, as US strikes target Iranian infrastructure including bridges, energy sites, and a key port. Iran retaliated with missile launches against US allies, hitting a desalination plant in Kuwait. The US military death toll in the Iran conflict has risen to 16 after two troops were killed in Jordan. A counter-signal emerges: Iraq is using thousands of trucks to haul fuel oil through Syria, bypassing the Strait of Hormuz, and Trump replaced the 20% Hormuz toll with 'massive' Gulf investment deals. However, the dominant market impact remains bullish for energy and defense, bearish for risk assets and airlines. Separately, the US announced 25% tariffs on Brazil effective July 22, which could pressure Brazilian equities and benefit US domestic producers. The narrative arc is ESCALATING for the US-Iran conflict, with no de-escalation signals. In tech, Oracle is switching to fuel cells for its Project Jupiter AI data center after gas pipeline permits were denied, adding billions to the project budget. Netflix dropped over 7% despite in-line earnings, as revenue slightly missed estimates. Apple raised iPhone prices in Japan by 8-11% due to yen weakness. Tesla is set to report earnings on July 22, with Bank of America revising forecasts ahead of the report.