WS #12625

The dominant theme in this window is the escalating US-Iran conflict, with multiple sources reporting new threats and operational developments. Iran's Tasnim news agency, citing a military source, stated Tehran will retaliate against regional infrastructure (bridges, energy sites) linked to the US if Washington strikes Iranian infrastructure. This represents a significant escalation in the conflict's scope, moving beyond direct military targets to critical infrastructure. Separately, the Houthis have deployed missiles and drones near the Bab el-Mandeb strait, preparing to attack ships, and have declared a maritime embargo against Saudi Arabia. This threatens the alternative oil export route that had partially offset Hormuz disruptions. Oil prices are already elevated, with WTI above $87 and Brent above $94, and the Iran war escalation is driving further supply concerns. The Pentagon disclosed that US military operations in Iran have cost $37.5B, with a request for $90B more, underscoring the fiscal burden. On the corporate front, AMD announced a strategic partnership with Anthropic, investing up to $5B and deploying 2GW of GPUs, a major AI infrastructure deal that bolsters AMD's competitive position against Nvidia. Reddit shares are sliding ~9% on reports it may end its AI data licensing agreement with Google, which would impact both companies' AI strategies. GE Vernova fell after its outlook disappointed relative to high AI-driven expectations. The US-China high-level meeting was described as 'constructive and positive' by China, with both sides agreeing to prepare for the next stage of exchanges, a modest de-escalation signal in trade tensions. The US 30-year bond yield remains above 5%, the longest stretch since the financial crisis, reflecting persistent inflation and debt concerns. Overall, the Iran conflict is ESCALATING, with new threats to infrastructure and shipping lanes, while AI-related corporate news provides countervailing positive signals for specific tech names.