WS #12442

The US-Iran conflict has escalated sharply overnight, with the US launching a ninth consecutive night of strikes on Iran and Iran retaliating with missile launches toward US assets in the Gulf. A British military ship is ablaze in the Strait of Hormuz, and explosions have been reported in multiple Iranian cities including Tabriz, Chabahar, and Bandar Mahshahr. The US confirmed two service members killed in Jordan on Friday and another soldier killed in Iraq during a controlled detonation of an Iranian drone. The interim ceasefire has effectively collapsed. This escalation is driving oil prices higher and fueling safe-haven flows, while raising fears of a broader regional conflict that could disrupt global energy supplies. Meanwhile, IBM's preliminary Q2 results missed estimates significantly, with revenue of $17.2B (up just 1% YoY) falling short of the $17.86B consensus, indicating that AI spending is hurting traditional tech firms. S&P 500 futures are up 0.2% and Nasdaq futures up 0.6% despite the geopolitical tensions, suggesting some resilience in tech. The dominant narrative is ESCALATING US-Iran conflict with oil and defense stocks likely to benefit, while airlines and consumer stocks face headwinds.