WS #12407

The US-Iran conflict is ESCALATING sharply, with Iran launching missile and drone attacks on Kuwait and Bahrain, causing a fire at a Kuwaiti power plant, and firing ballistic missiles toward Jordan. The US has reportedly struck an Iranian nuclear site. Oil prices surged, with Brent crude rising 4.59% to $88.10/barrel and WTI up 4.48% to $82.49, benefiting energy stocks (XOM, CVX, XLE) while pressuring airlines (DAL, UAL, AAL) and consumer sectors. The Strait of Hormuz blockade continues to disrupt oil flows, and Iran's shadow fleet rushed $6 billion of oil to China during a brief US truce. The conflict has entered a more dangerous phase with 16 US troop deaths reshaping Washington's response. In a significant counter-signal, President Trump has called for adding Iran to the Russia sanctions bill, which could escalate economic pressure on Tehran. Separately, Apple overtook Nvidia to become the world's most valuable company at $4.88 trillion, as investors reassess AI beneficiaries. IBM shares crashed 25% after warning that AI is diverting corporate spending from software to infrastructure, signaling a major shift in tech spending. The Russia-Ukraine war saw Russia's largest ballistic missile attack on Kyiv overnight, with over 40 missiles fired, while Ukraine struck Russian oil facilities and cargo ships in the Black Sea. On the corporate side, Apple filed a lawsuit against OpenAI for alleged trade secret theft, and Tesla's German factory plans to expand production by 3,500 jobs amid strong EV credit demand.