WS #12702
The US-Iran conflict remains the dominant market narrative, with oil prices surging toward $100 per barrel. Houthi missile strikes on Saudi Aramco's Jizan refinery and a naval blockade in the Bab el-Mandeb Strait are escalating supply risks. However, a potential de-escalation signal emerged: the US paused strikes on Iran for the first night in two weeks, and both sides confirmed ongoing talks. This counters the prevailing bearish oil thesis, suggesting a possible near-term easing of tensions. Separately, the 'Trump Trade' is unraveling due to Iran war-driven inflation, with Ned Davis Research's Trump Trade Index down 16% since May. Alphabet's first-ever quarterly cash burn ($5.9B) due to AI spending has spooked tech investors, dragging down MAG7 names. The SK Group-Nvidia $750B semiconductor deal from the prior window remains a high-significance positive for NVDA, uncorrupted by the macro selloff.
Topics
Key developments
- US pauses strikes on Iran for first night in two weeks; both sides confirm ongoing talks
- Houthi missile strikes on Saudi Aramco's Jizan refinery; Bab el-Mandeb blockade escalates
- Alphabet reports first-ever quarterly cash burn of $5.9B; raises AI capex forecast, shares fall 7%
- Trump Trade Index down 16% since May as Iran war drives inflation and tariffs
- SK Group-Nvidia $750B semiconductor deal ongoing — first surfaced 15:30