WS #13036

The US-Iran conflict has escalated sharply with fresh US strikes on Iranian targets, including the island of Qeshm in the Strait of Hormuz, after Iran fired missiles at US forces in Jordan. Drone strikes also hit US-owned LNG vessels at Egypt's Damietta port, widening the conflict to new energy hubs. Oil prices surged 7-9% on the session (Brent near $87.50, WTI near $83.70) but are giving back some gains in Asian trade. The 30-year US Treasury yield hit 5.2348%, the highest since mid-2007, as bond markets signal inflation concerns despite the Fed holding rates steady. Microsoft reported strong earnings (Azure +43%, revenue $90B, EPS beat) with after-hours gains of 7%+, providing a bullish counter-signal to the tech selloff. Meta disappointed (revenue $60.8B, Reality Labs lost $4.6B, cumulative losses $87B) with stock down 9% after-hours. South Korea's KOSPI rebounded 4.5% after a 33% July rout, supported by Samsung's record chip profits (operating income 89.2 trillion won vs est. 79.3 trillion) and government measures to curb leveraged ETFs. Taiwan detained an NVDA employee over alleged AI chip smuggling to China. The dominant narrative is ESCALATING US-Iran conflict driving oil and risk-off, but Microsoft's earnings and Samsung's results provide partial offsets. The Fed's lack of guidance on future rate hikes has led to bond market tightening, with the 30-year yield at 5.2348%.