WS #13218

The US-Iran conflict narrative remains ESCALATING, with Iran's foreign minister warning against 'adventurous action' by the US in calls with Turkey and Pakistan, and Iran's response plan explicitly targeting US energy infrastructure in the Middle East. A Greek-owned LNG carrier (Gaslog Shanghai) was struck in the Strait of Hormuz, causing a blackout, and the conflict has expanded to Egypt with a drone strike on a tanker at Damietta port near the Suez Canal, though operations have resumed. These developments heighten energy supply risks, supporting bullish oil prices and energy stocks while pressuring airlines and shipping. A counter-signal emerges as Iraq and Turkey signed a 1-year oil pipeline deal to boost exports during Hormuz closures, partially offsetting supply fears. The US Treasury intervened in FX markets for the first time since 1998, buying yen and selling euros via Goldman Sachs and Morgan Stanley, a significant macro development that could impact currency markets and multinational earnings. Corporate news: SpaceX reports its first post-IPO earnings on Aug 4, with markets expecting a loss, and Tesla's China divestiture report was denied by Musk as 'fake news,' but the SpaceX merger narrative persists. WestJet flight attendants issued strike notice, canceling 81 flights. Bitcoin closed July up 7%, first positive month since April, with three weeks of ETF inflows.