WS #12420

The US-Iran conflict continues to escalate, with CENTCOM reporting additional US casualties: remains found for a missing service member in Jordan and a separate KIA in northern Iraq from an Iranian drone's unexploded ordnance, bringing the week's death toll to four US troops. Iran's supreme leader called for 'sacred unity' amid political divides, while the US launched an eighth consecutive night of strikes. Oil prices remain elevated (Brent at $88.10, WTI at $82.44) as Strait of Hormuz traffic is largely stalled, though whispers of alternative oil routes emerge. The conflict is drawing comparisons to the Jimmy Carter era, with inflation and Iran war weighing on Trump's presidency. Separately, chip stocks are in a bear market (semiconductor index down 20% from record) driven by AI spending concerns and the emergence of Chinese AI model Kimi K3 from Moonshot AI, which plans a Hong Kong IPO within six months at a $30B+ valuation. The Fed's Cleveland President Beth Hammack added to hawkish rhetoric, suggesting further rate hikes may be needed. McDonald's reported unacceptable US margins (8.1% vs 10.9% last year) citing supply chain disruptions. Apple remains near all-time highs despite chip selloff, with M1 chip durability reducing upgrade cycles. The dominant narrative is ESCALATING on the Iran conflict, with oil supply disruption risks persisting and US casualties mounting.