WS #9136

The US-Iran conflict continues to escalate, with US forces striking Iranian coastal radar sites after Iran launched drones toward the Strait of Hormuz. Iran retaliated with ballistic missiles targeting US bases in Kuwait and Bahrain, though most were intercepted. Kuwait condemned the attacks as a 'flagrant violation' of international law. This directly threatens oil supply through the Strait of Hormuz, supporting bullish energy sentiment. Separately, Ukraine's SBU confirmed strikes on Russia's Baltic Fleet arsenal and an oil depot, adding to supply-side risks for energy markets. On the tech side, Google signed a massive $920 million per month compute deal with SpaceX for AI capacity, signaling surging demand for AI infrastructure. The blowout jobs report is seen as bad news for stocks but not forcing the Fed's hand on rates. Bitcoin remains under pressure below $60,000, with Strategy (formerly MicroStrategy) selling a small amount of BTC for the first time since 2022, raising concerns about its strategy. Container shipping rates jumped amid higher fuel costs and congestion, adding to inflationary pressures. The dominant theme is the escalation of US-Iran hostilities, which is bullish for energy stocks and bearish for risk assets, with a notable tech selloff emerging as a counter-narrative. The Google-SpaceX deal is a high-significant positive for AI infrastructure plays (NVDA, GOOGL) and counters the broader tech weakness narrative.