WS #9281

The Israel-Iran conflict continues to escalate, with new reports of Israeli airstrikes on multiple targets across Iran, including Tehran and Isfahan, despite reported US requests to hold off. Iran has threatened to strike oil and gas infrastructure linked to the US and allies. This has driven a sharp sell-off in Asian markets, with South Korea's KOSPI falling 8.3% and triggering circuit breakers, while Japan's Nikkei dropped 3.9%. Oil prices are surging, with USO up 4.8% in premarket. The conflict is also sending global shipping costs through the roof, as per Benzinga. Counter-signals include OPEC+ pressing ahead with a 188,000 bpd output hike for July, which may partially offset supply concerns. Additionally, AMD announced a £2 billion AI investment in the UK, providing a bullish tech narrative. The UK PM Starmer's ultimatum to tech firms to block explicit images on children's phones by September or face legislation is a regulatory signal for big tech. The Philippines earthquake aftermath continues with 19 dead, but this is localized and not market-moving. The dominant narrative is ESCALATING: the Israel-Iran conflict is intensifying, oil is spiking, and global risk assets are selling off.