WS #12409

The US-Iran conflict has escalated significantly with new developments: Iran launched missile and drone attacks on Kuwait and Bahrain, causing a fire at a Kuwaiti power plant, and struck a vessel in the Black Sea. A US missile strike reportedly hit the Darkhovein nuclear site in Iran. Two US service members were killed in Jordan, and 16 total have died since the conflict began. The Strait of Hormuz remains closed, with oil prices already up ~4.5% (Brent at $88.10). Iran has attacked vessels attempting to break the blockade. Separately, Alibaba released a preview of its Qwen3.8 Max model, claiming it ranks second only to Fable 5, which is positive for BABA and the AI sector. The Fed's preferred inflation gauge is set for a downward revision, which is bullish for risk assets. The US-Iran conflict is ESCALATING, with direct attacks on Gulf allies and US forces, increasing the risk of broader regional war and sustained high oil prices.