WS #14114

The Middle East escalation narrative remains dominant and is intensifying. President Trump's declaration that he will soon declare the Strait of Hormuz US territory, coupled with fresh attacks on two ADNOC tankers and Iran's defiant response, has pushed oil prices sharply higher (Brent +1.67% to $88.52, WTI +1.42% to $82.40, both on track for ~6% weekly gains). This is a clear escalation with direct market impact: energy names (XOM, CVX) benefit, while airlines (DAL, UAL) and shipping (MATX) face cost pressures. The S&P 500 slipped 0.2% from its record on weak retail sales and consumer confidence, but energy was the standout gainer (+1.4%). Separately, a major new data point emerged: Berkshire Hathaway's Q2 13F reveals aggressive deployment of cash under new CEO Greg Abel, adding ~48.1M shares of Alphabet (now its 3rd largest holding) and 17.5M shares of Delta Air Lines, with net stock purchases near $20B. This is a high-significance signal for GOOGL and DAL, contradicting the broader tech-selloff narrative. Also notable: Anthropic is reportedly targeting a $2T+ valuation for an October IPO, projecting $190-200B in 2028 revenue, which could reshape AI sentiment. Nvidia's downsized OpenAI data center guarantee (to <$120B) is a carry-forward item, still relevant for NVDA.