WS #12655

The US-Iran conflict continues to escalate, with the IRGC claiming a cruise missile strike destroyed Amazon's Bahrain data center, marking the first use of cruise missiles against commercial cloud infrastructure in the Gulf conflict. This is corroborated by Hacker News and aligns with the ongoing escalation narrative. However, a potential de-escalation signal emerges: an Omani diplomatic delegation has arrived in Iran to discuss managing ship traffic in the Strait of Hormuz, confirmed by both a Bluesky priority post and the previous situational awareness. This could counter the oil supply disruption thesis. In corporate news, Tesla (TSLA) continues to slide, with shares at $309, short sellers gaining $9 billion, and the stock at its lowest in nearly a year. SpaceX (SPCX) is also hitting post-IPO lows ahead of a massive 900M share lock-up expiry. Intel (INTC) posted strong Q2 revenue growth of 25% YoY, but Stifel lowered its price target to $110. 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 (VZ) shares are trading higher after better-than-expected Q2 adjusted EPS and raised FY26 guidance. The S&P 493 continues to outperform the Magnificent Seven by nearly 17 percentage points in 2026, indicating a broadening market. The dominant theme is ESCALATING in the US-Iran conflict, with the data center strike representing a new front, but the Omani diplomatic mission offers a potential counter-signal.