WS #7117

The dominant macro narrative remains ESCALATING: the Iran conflict intensifies with new developments. The Wall Street Journal confirms, based on informed sources, that the UAE has been carrying out strikes on Iran, including an attack on Lavan Island refinery, marking a major escalation. This is corroborated by multiple sources. Meanwhile, Pakistan's foreign ministry has been in talks with both Iran and China, underscoring the importance of continuing the ceasefire and ensuring normal passage through the Strait of Hormuz, suggesting diplomatic efforts to de-escalate. However, the Pentagon puts the Iran war cost at $29 billion, and high inflation is pushing Treasury yields to 5%, with energy prices from the war pinching consumers. In corporate news, Alphabet offers an eight-tranche deal in its debut yen bond sale, and eBay unbans Ryan Cohen as it rejects GameStop's takeover attempt. Bitcoin's bull-bear cycle indicator turns green for the first time since 2023, signaling a potential regime shift. Qualcomm tumbles 10%, leading semiconductor and AI stocks lower. The prevailing narrative is ESCALATING across the Iran conflict, with a counter-signal emerging from Pakistan's diplomatic efforts to de-escalate the Strait of Hormuz situation.