WS #12589

The dominant narrative remains the US-Iran conflict, which is ESCALATING. New reports indicate Iran allegedly targeted Israel's embassy in Bahrain, and sirens are sounding in Kuwait amid an Iranian attack. The Houthis threaten a Red Sea blockade, putting the oil market at greater risk. Oil prices continue to rise, with Brent crude settling at $91.01 and WTI at $84.91. However, a counter-signal emerges: Israel's Finance Minister Bezalel Smotrich stated that Israel has no interest in joining the war with Iran, potentially limiting the conflict's expansion. In corporate news, Super Micro's stock soars after unexpected margin doubling, lifting Dell and other AI-related names. AMD's CEO forecasts server CPU market growth above 35% annually, signaling strong AI demand. The White House plans to redirect billions in research funds toward AI, away from colleges. Nikkei futures trade sharply higher, indicating a positive open for Asian markets. Ukraine's Zelenskyy fires his military chief after protests, a development with limited direct US market impact but notable for geopolitical risk. The Teamsters reached a deal in principle with United Airlines for 11,000 mechanics, including a $54 million signing bonus, which is positive for labor relations but not a major market mover. Overall, the oil supply disruption narrative is intensifying, but the Israel non-participation statement and the IEA's potential further reserve release (mentioned in a Norwegian article) act as partial counters.