WS #9290

The dominant narrative is a sharp escalation in the Israel-Iran conflict, with Iran completely suspending all flights nationwide and canceling all domestic flights, while Israel continues heavy strikes on southern Lebanon. This marks a significant escalation from the prior de-escalation narrative. The G7 is planning a demining operation in the Strait of Hormuz, and OPEC+ has approved a fourth consecutive output increase, but these are counter-signals that may not fully offset the immediate flight-suspension shock. Separately, a major AI infrastructure deal between Amazon and Corning (GLW) for optical fiber to power data centers is a high-significance positive for GLW and AMZN, reinforcing the AI buildout theme. Reports that Google and Nvidia are considering Intel as a backup chip manufacturer are driving INTC premarket gains, signaling potential shifts in the semiconductor supply chain. The SpaceX IPO is also generating buzz, with potential implications for space-related stocks. The overall market tone is cautiously optimistic, with S&P 500 futures up 0.6% after Friday's selloff, but the Iran flight suspension is a key macro risk that could reprice oil and safe-haven assets.