WS #12410

The US-Iran conflict continues to escalate, with new missile attacks on Jordan and Kuwait, and US strikes on Iran. Trump has called for adding Iran to the Russia sanctions bill and has reversed course on charging ships for Strait of Hormuz passage, now saying Gulf countries will invest in the US instead. Oil prices are rising, with Brent at ~$88 and German diesel up 6.7 cents in a week. Tanker stocks (FRO, DHT) are benefiting from elevated rates. Iraq is exploring a Mediterranean pipeline to reduce Hormuz reliance. Separately, Netflix (NFLX) shares fell 7.26% after weak Q3 guidance, while Eli Lilly (LLY) announced a $3.8B acquisition. The Fed's preferred inflation gauge is set for a downward revision, which is bullish for risk assets. The Iran conflict narrative is ESCALATING, with direct attacks on US allies and forces, increasing the risk of sustained high oil prices and broader regional war.