WS #12593

The dominant theme in this window is the escalation of the US-Iran conflict, with multiple corroborating sources reporting that Defense Secretary Hegseth testified before the Senate requesting $88 billion in supplemental funding, revealing the war has cost $37.5 billion so far. Unconfirmed reports of explosions and bombings in Tehran add to the escalation narrative. Separately, President Trump announced new 50% tariffs on nearly $20 billion of Canadian imports under Section 338, a rarely used authority, effective Aug 19. This is a significant trade escalation. The yen slid past 163 to a fresh four-decade low against the dollar, which could impact Japanese exporters and US multinationals. On the earnings front, Super Micro Computer (SMCI) surged after hours on a gross margin raise and record $60 billion backlog, a positive signal for the AI server space. Nvidia's Vera Rubin platform remains on schedule per a Techmeme headline, supporting the AI capex thesis. The Houthis broke a two-year truce with Saudi Arabia by declaring a naval blockade, adding to Middle East supply risks. Gold held above $4,000 on buy-the-dip trade. The dominant narrative is ESCALATING on US-Iran conflict and US-Canada trade tensions.