WS #5933

The Iran-US conflict escalates significantly: Trump halts Iran talks and seizes ships, escalating the naval blockade, while Netanyahu orders strikes on Hezbollah in Lebanon. This marks a sharp escalation from the previous stalemate, with direct military confrontation risks rising. The Strait of Hormuz blockade continues, with Iran's central bank confirming toll revenue from the strait. Separately, China imposes export controls on Hensoldt and other EU firms, targeting defense supply chains. In tech, Google plans a $40B investment in Anthropic, signaling continued AI infrastructure spending. Intel, AMD, and Nvidia show positive momentum, with Intel beating expectations. The EU is reportedly preparing rules to force Google to open Android to AI competitors, which could impact Google's competitive moat. Overall, geopolitical risk is the dominant theme, with energy and defense sectors most affected.