WS #12463

The US-Iran conflict continues to escalate, with Brent crude breaking above $90/barrel for the first time since June, reaching $91.42 intraday. The Strait of Hormuz is effectively closed to LNG traffic, with zero LNG tankers transiting in the past three days, causing Asian LNG prices to surge 10% in the past week and 25% over four weeks. Iran claims to have blown up two oil tankers, and a UKMTO report confirms a vessel on fire after being struck by an unknown projectile. The US launched a ninth consecutive night of strikes against Iran. This is a clear escalation of the dominant geopolitical risk theme. Separately, UK political transition is underway as Keir Starmer resigns and Andy Burnham becomes Prime Minister, with Burnham expected to fast-track North Sea oil and gas exploration. In corporate news, Brookfield and CPP Investments are acquiring LXP Industrial Trust for $5.2B all-cash at $61.20/share (12.3% premium to 30-day VWAP). Hut 8 fully commercialized its 1GW Beacon Point data center campus with a second 352MW lease, bringing total campus contract value to $19.6B. Domino's Pizza reported Q2 GAAP EPS of $4.07, missing by $0.10, though revenue beat slightly. The EU fined AliExpress €550M for DSA violations. Moonshot AI is seeking shareholder approval for a Hong Kong IPO that could value it above $30B. The dominant theme is ESCALATING geopolitical risk with direct oil and LNG supply disruption.