WS #13519

The dominant market theme is the ongoing US-Iran conflict and the potential reopening of the Strait of Hormuz, which is showing signs of de-escalation. Iran and Oman have reached an understanding on shipping route coordinates, with a joint statement being finalized, though Iran cautions that this alone won't guarantee security and depends on the US lifting its naval blockade. This has pressured oil prices lower (Brent ~$79, WTI ~$75), supported European equities to record highs, and contributed to a rally in gold and silver as inflation expectations ease. However, the situation remains fluid with Houthi attacks on Saudi tankers and a reported Houthi strike taking a Saudi refinery offline through mid-August, adding supply-side risk. Separately, the semiconductor/AI selloff continues, with AMD, Sandisk, and Western Digital falling in after-hours trade, and Asian hedge funds posting steep losses in July. SpaceX's stock fell over 13% after reporting a sixfold jump in capex to $18B, raising concerns about AI spending returns. In earnings, Canadian Natural Resources beat with record production, Himax beat on revenue but missed EPS, and WPP surged on turnaround momentum. China's tax dragnet on offshore wealth is rattling Hong Kong financials, and the US-Japan yen intervention remains a focus with the dollar index recovering.