WS #13032

The US-Iran conflict has sharply escalated, with the US military launching fresh strikes on Iran after a days-long pause, retaliating against an Iranian missile attack on US forces. This development, corroborated by multiple sources including CNBC, AP, Al Jazeera, and the Guardian, marks a significant escalation in the conflict, directly threatening oil supply routes through the Strait of Hormuz. Brent crude is trading above $90 per barrel, and the 30-year Treasury yield surged to 5.14% as the Fed held rates steady with a hawkish tilt, three members dissenting for a hike. The Dow fell 2.19%, S&P 500 dropped 1.52%, and Nasdaq declined 1.74% in Wednesday's session. Meanwhile, Microsoft reported strong earnings with Azure revenue growth accelerating to 43%, beating estimates, and kept its capex outlook steady, leading to a 9% after-hours rally. This positive MAG7 signal contradicts the broader macro selloff and suggests a potential rotation into tech. Samsung Electronics posted record Q2 profit, up 1,800% on AI chip demand, but South Korea's KOSPI plunged nearly 6% on AI spending concerns. The dominant narrative is ESCALATING US-Iran conflict driving oil higher and risk-off, but Microsoft's earnings provide a bullish counter-signal for tech.