WS #12679

The dominant theme remains the escalation of the US-Iran conflict, now in its 13th consecutive night of strikes, with the Strait of Hormuz effectively closed and oil prices having spiked above $100 before easing. However, this window brings a significant counter-signal: oil prices fell sharply on Friday, with Brent crude settling at $96.78 (-3.88%) and WTI at $89.31 (-3.12%), as profit-taking and reports of Pakistan mediating peace talks between Iran and the US provided some relief. The Dow Jones gained 0.45% while the Nasdaq fell 0.64%, reflecting continued rotation out of tech into value. The semiconductor sector was hit hard, with Intel plunging 7.9% despite beating earnings estimates, as investors focused on increased spending. The EU is tightening airline ownership rules, clouding Apollo's $7.65B bid for easyJet and sending its shares down 15%. Paramount paused its Warner Bros. merger amid legal challenges. The ICC voted to remove Chief Prosecutor Karim Khan. Crop prices hit three-year highs due to Black Sea disruptions and heat waves, signaling potential food inflation. The US imposed new forced-labor tariffs on 60 trade partners, but exempted farm inputs like fertilizers and pesticides. SpaceX's Starship Flight 13 successfully launched. The narrative arc is STABLE for the Middle East conflict (ongoing but with oil price easing as a counter-signal), while the tech selloff is ESCALATING.