WS #12561

The US-Iran conflict continues to escalate, with new developments including Iranian drones patrolling Kuwaiti airspace and Trump threatening to 'take care of' Houthis if they blockade Saudi ports. Kuwait's oil production has collapsed to 500,000 bpd from 2.5 million bpd, and Brent crude has risen to $91.32, WTI to $84.38. The Houthi blockade is now affecting 7% of global oil supply, with 6 ships forced to turn around. However, a potential counter-signal emerges: international efforts to disarm Hezbollah are being explored, and Trump met with Lebanon's president, suggesting diplomatic channels remain open. Separately, the US Trade Representative signaled a new round of tariffs could be coming soon as existing duties near expiration, adding to trade war uncertainty. On the corporate front, GM reported a strong Q2 beat (EPS $3.57 vs $3.18 est), sending stock up 5%+. Tesla expanded robotaxi service to Orlando and Tampa ahead of earnings, while a $103M dark pool order in NVDA signals institutional interest. The CLARITY Act crypto regulation bill cleared a major hurdle, sending Coinbase up 11% and Bitcoin to a two-week high. The dominant narrative is ESCALATING on the geopolitical front, with oil prices surging and supply disruptions worsening.