WS #12594

The dominant theme remains the escalating US-Iran conflict, with Defense Secretary Hegseth testifying before the Senate that the war has cost $37.5 billion so far and requesting $67 billion in supplemental funding. This is corroborated by multiple sources (Al Jazeera, AP, GDELT, etc.). Unconfirmed reports of explosions in Tehran add to the escalation. Separately, Trump announced new 50% tariffs on Canadian imports under Section 338, effective Aug 19, escalating trade tensions. The yen slid past 163 to a fresh four-decade low. On the positive side, Wall Street closed higher led by a semiconductor rebound (Micron +12.2%, Intel +8.6%), with the Philadelphia SE Semiconductor Index rallying 5.2%. Nvidia's stake in Nebius (9.3%) boosted NBIS +18.8%. Super Micro Computer surged after hours on strong margins and backlog. The Houthis declared a naval blockade against Saudi Arabia, adding to Middle East supply risks. Oil edged higher with Brent near $91. Gold held above $4,000. The dominant narrative is ESCALATING on US-Iran conflict and US-Canada trade tensions, but semiconductor stocks are showing a counter-trend rally.