WS #8902

The Iran-US conflict continues to escalate with multiple corroborated reports of Iranian drone strikes on US bases in Kuwait and Bahrain, including the Fifth Fleet HQ. Trump confirmed the US will maintain the Strait of Hormuz blockade, with comments suggesting it may last until Labor Day. Oil prices surged: WTI at $96.13 (+2.5%), Brent at $98.19 (+2.3%). Counter-signal: Iraq's PM ordered resumption of oil operations in Kurdistan, potentially adding supply. Ukraine struck a St. Petersburg oil terminal, and Zelenskiy signaled readiness for direct talks with Putin, potentially de-escalating the Russia-Ukraine front. The US proposed tariffs of at least 10% on most imports after a forced-labor probe. ISM Services PMI came in at 54.5% vs 53.7% est., indicating continued expansion but with elevated prices (71.3). Meta launched Business Agent AI tools, lifting shares. Microsoft and OpenAI breakup details emerged, with Microsoft aiming to become a top-4 AI lab. Alphabet upsized equity offering to $85B for AI spending. Uber cut 23% of its people division. Macy's lifted outlook as sales rose. Blackstone led a private equity selloff after Partners Group redemption limits. The dominant theme is the Iran conflict ESCALATING, with oil prices surging and risk assets under pressure, but a potential Ukraine-Russia de-escalation and Iraq's Kurdistan oil restart offer partial counters.