WS #12499

The US-Iran conflict is escalating sharply, with multiple sources reporting new Iranian ballistic missile attacks on Jordan, explosions near Sirik, and Israeli military movements suggesting a potential ground incursion. The US has identified two soldiers killed in an Iranian attack in Jordan, and nearly 100 US service members have been injured this month. The conflict is driving oil prices higher, with US gas prices hitting $4/gallon and Brent crude reaching one-month highs. The Strait of Hormuz remains disrupted, with only 14 ships passing on Sunday. This escalation counters any hopes of de-escalation and is likely to push energy stocks higher while pressuring airlines and consumer stocks. Separately, a US judge has temporarily paused the Paramount-Warner Bros. merger, creating uncertainty for media stocks. On the tech side, Alphabet shares rose 2.9% on reports of a new AI server chip, and chip stocks recovered from last week's selloff. The UK has a new Prime Minister, Andy Burnham, who has appointed John Healey as Chancellor, signaling potential policy shifts.