WS #12654

The US-Iran conflict continues to escalate, with Iran launching drone and missile attacks on Kuwait and Kuwait's air defenses intercepting 'hostile' targets from Iran. This marks a significant expansion of the conflict to Gulf states beyond Iraq and Jordan. Omani diplomatic delegation arrives in Iran to discuss managing ship traffic in the Strait of Hormuz, a potential de-escalation signal for oil supply routes. 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. In corporate news, Booz Allen Hamilton surged 14.9% after beating Q1 earnings and maintaining guidance. Tesla continues to slide, with short sellers gaining $9 billion, and the stock trading at $309, its lowest in nearly a year. Nvidia, Microsoft, Meta, Palantir, and 20+ other companies signed a letter warning against government restrictions on open-weight AI models, a bullish signal for AI-related tech stocks. Verizon Communications shares are trading higher after better-than-expected Q2 adjusted EPS and raised FY26 guidance. The S&P 493 is outperforming the Magnificent Seven by nearly 17 percentage points in 2026, indicating a broadening market. Netanyahu will travel to Washington on Monday to meet Trump at the White House on Tuesday, a potential diplomatic development that could affect the conflict narrative. The dominant theme is ESCALATING in the US-Iran conflict, with the attack on Kuwait representing a new front.