WS #12402

The US-Iran conflict continues to escalate sharply, with new reports of US airstrikes in Abadan and Kermanshah, Iran, and Iranian ballistic missiles targeting Jordan near Israel's Eilat. Iran's IRGC claims to have stopped vessels in the Strait of Hormuz, while Kuwait reports a second consecutive day of strikes on power and water desalination plants. Oil prices have surged, with WTI up 16% weekly and Brent above $88, as the Strait of Hormuz crisis deepens. LNG exports from the Persian Gulf have collapsed, with S&P Global reporting only one LNG cargo exiting in the past week. The US has launched military revenge strikes after two American soldiers were killed in Jordan. Separately, Russia launched one of its largest ballistic missile attacks on Kyiv, with 41 missiles and 125 drones, killing at least one person. Ukraine struck Russian oil tankers in the Black Sea and the Caspian Pipeline Consortium terminal. On the corporate front, Netflix shares tumbled over 8% after forecasting Q3 revenue and earnings below expectations, while Apple raised iPhone prices in Japan by up to 11% amid a weak yen. Moonshot AI's Kimi K3 model continues to disrupt the AI landscape, with the company reportedly seeking Hong Kong IPO within 6 months at a valuation over $30 billion. The dominant theme is US-Iran escalation, which is ESCALATING, with oil supply risks intensifying and no de-escalation in sight.