WS #13264

The dominant theme is the US-Iran conflict, which is in a DE-ESCALATING phase. President Trump halted strikes on Iran after Saudi Crown Prince MBS urged dialogue, citing 'perimeters of a deal' to reopen the Strait of Hormuz. However, Iran denies any agreement and insists the strait remains closed, with negotiations with Oman in final stages. This creates a mixed signal: de-escalation reduces immediate war risk (bearish for oil), but the unresolved Hormuz closure sustains supply disruption (bullish for oil). OPEC+ announced a 188,000 bpd production increase for September, but analysts note it's symbolic as Hormuz constraints limit actual exports. Oil prices remain elevated (~$88 Brent), with Exxon and Chevron warning of constrained refined product supplies. In equities, the AI trade shows divergence: Microsoft surged on cloud guidance, while Meta fell on cash flow concerns; hyperscalers (AMZN, MSFT, GOOGL) gained $1.5T in market value. Tesla hit 10 million EVs produced, but faces a $10M lawsuit over a test-drive accident. Bitcoin is under pressure (~$63k), with Strategy (MSTR) reporting an $8.3B unrealized loss on its holdings. The upcoming week features key earnings (PLTR, AMD, DIS, ABNB) and the US jobs report on Aug 7, which will drive market direction.