WS #14343

The US-Iran conflict has escalated sharply, with US forces striking Iranian rocket launchers on Larak Island in the Strait of Hormuz—the first US military action in a month—and Iran retaliating with ballistic missile launches at Muwaffaq Salti Airbase in Jordan and reportedly at US vessels in the Strait. Brent crude oil has risen over 2% to above $90, and US stock futures are flat to slightly lower, with energy names likely to benefit while airlines and shipping face headwinds. Treasury Secretary Bessent announced plans to sanction another bank this week to clamp down on Iran transactions, intensifying the economic pressure campaign. The situation is clearly escalating, with multiple sources corroborating the strikes and retaliation, and oil prices responding immediately. This is a high-significance development that will likely drive energy stocks higher and pressure risk assets, though the market's muted futures reaction suggests some of this was priced in.