WS #12653

The US-Iran conflict has escalated sharply with the US carrying out its 13th consecutive night of strikes across Iran, and Iran retaliating with drone attacks targeting US bases in Bahrain and Jordan. Iran's military has declared any location assisting US attacks a valid target, signaling further escalation. Kuwait's defense ministry reported intercepting 'hostile' targets from Iran. NATO confirmed a drone was shot down in Romanian airspace. Oil prices remain elevated above $100, with the Red Sea blockade pushing prices higher. The US extended the Lukoil transaction deadline to August 22, a minor counter-signal. On the economic data front, the US S&P Global Services PMI for July came in at 53.6 (est 51.5), a significant beat, while Manufacturing PMI was 53.8 (est 54.4), slightly below expectations. The composite PMI rose to 53.6 from 51.9. Russia cut its interest rate to 14% from 14.25%, a small dovish surprise. In corporate news, Booz Allen Hamilton surged 14.9% after beating Q1 earnings and maintaining guidance. Tesla's market cap fell below $1 trillion amid continued selling pressure, with short sellers gaining $9 billion. Nvidia, Microsoft, Meta, and 20+ other companies signed a letter warning against premature restrictions on open-weight AI models, a bullish signal for AI-related tech stocks. Netanyahu will meet Trump at the White House on Tuesday, a potential diplomatic development that could affect the conflict narrative.