WS #12549

The US-Iran conflict continues to escalate with a 10th consecutive night of US airstrikes and Iran striking Kuwait, while the Houthi naval blockade forces ships to divert from Saudi Arabia and Saudi oil tankers abort Red Sea transit. Oil supply fears are driving Treasury yields higher and fueling inflation concerns. Bessent signals potential sanctions on China over AI model 'theft', and Trump is preparing fresh tariffs on Canada (50%). In corporate news, Microsoft and Mistral AI inked a multibillion-dollar pact for European data centers, Nvidia disclosed a 9.3% passive stake in Nebius Group, and SpaceX shares rose after ARK Invest disclosed a $20.5M purchase and the company set its first earnings date for Aug. 4, triggering a lock-up expiration. Novartis beat Q2 estimates, while Danaher fell 14% on guidance cut. The CLARITY Act appears close to passage, boosting crypto-linked stocks. Russia passed a landmark cryptocurrency bill legalizing crypto for foreign trade. The dominant theme is ESCALATING geopolitical risk in the Middle East, with counter-signals from potential diplomatic moves (Rubio meeting Wang Yi) and Bessent's tariff comments.