WS #13775

The dominant theme remains the US-Iran conflict and the Strait of Hormuz closure, which is ESCALATING. Iran's Revolutionary Guards reiterated on Sunday that the strait will remain closed until the US meets a list of demands, including compensation for war damage, and Iran denied direct negotiations with the US. President Trump said the US is 'only semi-negotiating' and wants to wait out Iran economically. This has led to a 1% rise in WTI crude to ~$79/barrel and S&P 500 futures slipping 0.2% on Sunday night. The lack of a deal is pressuring oil prices and equity markets, with energy and shipping sectors most affected. Cross-source corroboration from Al Jazeera, GDELT, and investing.com confirms the stalemate. A counter-signal is the possibility of a US-Iran agreement via Oman, with Vice President Vance noting progress, but this is not yet confirmed. Additionally, Houthi attacks on Yemen's port of al-Makha and a Saudi Aramco refinery (killing 11) are escalating regional instability, supporting oil prices. In corporate news, Apple is reportedly testing memory chips from China's CXMT for iPhones and MacBooks, which could ease supply constraints but faces political sensitivity; this is a medium-significance development for AAPL. Berkshire Hathaway's cash pile fell to $365.5B after a $10B stake in Alphabet and increased buybacks, signaling confidence in equities. China's July CPI rose 0.5% YoY, with core CPI at 0.9%, and PPI rose 3.5% YoY, showing moderate inflation and AI-driven price increases in electronics, which is supportive for tech supply chains. Unitree Robotics' IPO priced at 150.80 yuan/share, valuing it at ~610 billion yuan, with over 30 insurers holding >10% indirectly, highlighting strong demand for robotics/AI hardware. Overall, the market is bracing for continued geopolitical risk, with oil and energy stocks likely to outperform, while tech faces mixed signals from Apple's supply chain moves and China's inflation data.