WS #12626

The US-Iran conflict continues to escalate, with President Trump threatening to destroy one Iranian bridge or power plant for each attack on shipping in the Strait of Hormuz. Iran's Tasnim news agency, citing a military source, warns of retaliation against regional infrastructure and energy facilities linked to US interests if US 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, threatening the alternative oil export route. Oil prices are already elevated, with Brent crude topping $95/bbl, and the war escalation is driving further supply concerns. War-risk tanker insurance premiums through the Strait of Hormuz have surged nearly 1,900%, making a single $100 million transit cost about $5 million. 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. Apple plans a Mac lineup refresh with M6 chip this fall, aiming to meet AI demand. Amazon cut jobs in its artificial general intelligence group, marking the latest in a series of smaller reductions. Nike severs Chinese distribution deals in a broad strategic shift. USTR Greer made multiple statements on trade negotiations, including hopes for interim arrangements with Canada and Mexico by year-end, and that lower environmental standards in other countries justify higher tariffs. The US 30-year bond yield remains above 5%, 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.