WS #10390

The dominant theme is a sharp escalation in US-Iran tensions, with multiple sources corroborating that Iran's delegation walked out of negotiations in Switzerland after Trump issued new threats. This marks a reversal from the prior de-escalation narrative and is highly bearish for risk assets. S&P 500 futures fell 0.7% and Nasdaq futures dropped 1.1% in response. US 2-year Treasury yields rose to 4.2297%, the highest since February 2025, signaling a flight to safety and rate expectations. Separately, an explosion was reported at Qatar's Ras Laffan LNG facility, which could spike natural gas prices and affect global LNG markets. Japan's FinMin Katayama reiterated readiness to intervene on FX, supporting the yen. The Colombia election result (far-right Abelardo de la Espriella wins) is confirmed, reinforcing the rightward shift in Latin America. The Chicago shootings and NSA breach claim are noise. World Cup results are non-market noise.