WS #8716

The US-Iran conflict continues to escalate with new developments: Iran asserted permanent control over the Strait of Hormuz, impacting maritime traffic, while Kuwait condemned an Iranian missile attack on an airbase and affirmed its right to self-defense. The EU is reportedly considering a temporary freeze on the Russia oil price cap due to the Iran war, which could tighten global oil supply further. France's manufacturing PMI dropped sharply to 49.70 from 52.80, indicating contraction, while Germany's PMI also fell to 50.10 from 51.40. The ECB consumer survey showed inflation expectations steady at 4.0% for one year ahead but easing to 2.9% for three years ahead, with consumers seeing bigger economic contraction. Euro zone M3 money supply growth missed expectations at 2.7% vs 3.2% poll. On the corporate front, NIO vehicle deliveries jumped 62% in May, surpassing 37K monthly deliveries. Honeywell announced new brand identities for its automation and aerospace businesses ahead of its split. NVIDIA made multiple product announcements at GTC Taipei, including new AI supercomputers, security technology, and partnerships with Microsoft and Foxconn. The AI narrative remains stable but with competitive dynamics. The US-Iran conflict is ESCALATING (new strikes, Strait of Hormuz control, Kuwait condemnation), while the AI/tech narrative is STABLE.