WS #14063

The dominant market narrative remains the escalating US-Iran conflict, with the Strait of Hormuz blockade persisting and the US threatening 'unprecedented' economic sanctions and an 'indefinite' naval blockade. This is corroborated by multiple sources (Al Jazeera, Bloomberg, Reuters, and various GDELT feeds) reporting two more ADNOC-linked tankers attacked in the strait, with transit grinding to a near standstill. Oil prices are rebounding (Brent ~$88.5, WTI ~$81.5) on supply concerns, with a ~6% weekly gain, while European gas stocks are at 17-year lows, pressuring energy prices. This is bullish for energy names (XOM, CVX, MPC, PSX, VLO) and bearish for airlines (DAL, UAL) and shipping (MATX, ZIM). The US has also imposed new tariffs on foreign drones (100% on large, 25% on small, 15% on EU/Japan/Korea/Taiwan components), boosting US drone stocks (UMAC, RCAT, AVAV, KTOS) and pressuring importers. In corporate news, Apple has trained a custom AI model for China with Alibaba's support, a departure from its third-party strategy, and is also proposing a 5-15% cut on external App Store payments. Silver Lake is reportedly in talks to acquire Workday, sending WDAY shares up 18%. Reddit is set to join the S&P 500, replacing AvalonBay, effective Aug 18. Bitcoin remains under pressure at ~$62,765 with ETF outflows, while the broader market is supported by cooler PPI data reducing September Fed hike odds to ~35%.