WS #12542
The US-Iran conflict continues to escalate with the 10th consecutive night of US strikes, and new developments include Iran's strikes damaging Kuwait's water desalination plants and power stations, and the Pentagon reporting nearly 100 US service members injured over the past two weeks. Additionally, Kazakhstan has halted Caspian Pipeline Consortium oil exports to the Black Sea following Ukrainian drone strikes on tankers, and Indian refiners have halted Iraq oil loadings as Hormuz risks escalate. These developments are bullish for oil prices and energy stocks, but bearish for airlines, shipping, and consumer sectors. On the trade front, USTR Greer made multiple statements indicating ongoing dialogue with Canada and that action on tariffs is expected soon, while Trump is reportedly set to announce 10% tariffs on dozens of countries this week. In corporate news, Intel and Fortinet announced a strategic collaboration for security chips, which is a positive for Intel's foundry efforts. Amazon Business reached $60B in annualized gross sales. 3M reported a Q2 beat but noted tariff impacts. Schwab reported a Q2 beat. The Japanese yen weakened to 162.77 per dollar, its weakest in 40 years, fueling carry trades. Semiconductor ETFs saw massive inflows of over $2.1B in one day. Bitcoin flashed a macro bottom signal and topped $66,000.
Topics
Key developments
- Iran strikes damage Kuwaiti water and power infrastructure, Pentagon reports nearly 100 US injuries
- Kazakhstan halts CPC oil exports to Black Sea after Ukrainian drone strikes on tankers
- Indian refiners halt Iraq oil loadings as Hormuz risks escalate
- Intel lands Fortinet as foundry customer for security chips
- USTR Greer signals imminent tariff action, Trump plans 10% tariffs on dozens of countries
- Japanese yen slides to 162.77 per dollar, weakest in 40 years
- Semiconductor ETFs SOXX and SOXL attract over $2.1 billion in inflows in one day
- Amazon Business reaches $60 billion in annualized gross sales