WS #14306

The dominant market theme remains the US-Iran conflict, which is ESCALATING. Trump has ruled out extending the 60-day Iran ceasefire and threatened to bomb Oman, while US crude futures rose more than $1 as hopes of a peace deal faded. A Houthi missile launch from Yemen triggered air alerts in the UAE, and a deadly attack on a Red Sea ship added to supply chain concerns. These developments are pushing oil prices higher, with WTI around $85 and Brent near $91, benefiting energy producers and refiners while pressuring airlines and shipping. The EIA reported record US petroleum exports in April as global buyers sought alternatives to Hormuz flows, and Jeff Currie warned the real crisis is $170 diesel, highlighting the severity of the supply disruption. The bond selloff persists, with the 30-year Treasury yield topping 5.31%, the highest in 19 years, pressuring growth and tech stocks. Semiconductor and chip stocks are trading lower amid rising oil prices and bond yields, with Intel down 7.2% and memory chip concerns weighing on the sector. In corporate news, Workday's $51 billion buyout talks are lifting software stocks including Adobe, while Nvidia disclosed a $21 billion stake in SpaceX, and Anthropic's revenue reportedly jumped to $11.5 billion in Q2. China's economic data showed continued weakness, with factory activity contracting and retail sales missing expectations, adding to global growth concerns.