WS #13030

The US-Iran conflict has escalated sharply, with President Trump vowing to hit Iran 'very hard' after an intercepted missile attack on US forces. The US military has conducted airstrikes in Iran, and joint US-Saudi strikes targeted Iran-backed militias in Iraq, killing at least 20. Iraq condemned the strikes as a 'flagrant violation of sovereignty.' Oil prices surged ~7% (WTI above $84, Brent above $88) on renewed geopolitical risk. The Federal Reserve held rates steady at 3.5%-3.75% in a 9-3 vote, with three dissents favoring a hike. Chair Warsh welcomed rising Treasury yields as a 'change for the better,' signaling limited forward guidance. The Dow fell 2.2%, S&P 500 1.5%, Nasdaq 1.7%, and the 30-year yield hit a 2007 high of 5.14%. Samsung Electronics reported Q2 earnings: revenue 171 trillion won (in line), operating profit 89.4 trillion won (in line), chip division profit 89.2 trillion won, but mobile division posted a 700 billion won operating loss. Samsung sees limited H2 profits in mobile and a demand slowdown in mobile/PC chips, while server chip demand remains strong. Microsoft's Azure revenue surpassed $100 billion for the first time, with Q4 revenue beating estimates and shares rising 4% after-hours. Meta's capex pay-off is questioned by Wedbush. OPEC+ agreed in principle to raise output by 188,000 bpd in August, a potential counter to oil price spikes. The Iran war narrative is ESCALATING, with no ceasefire signals and new attacks on energy infrastructure. The Fed's hawkish hold and oil spike create stagflationary headwinds for equities, while energy stocks benefit.