WS #9134

The US-Iran conflict continues to escalate, with Iran launching medium-range ballistic missiles toward Kuwait and multiple explosions reported in Bahrain following missile and drone attacks. This directly threatens Gulf stability and oil supply through the Strait of Hormuz, which remains a key chokepoint. A tanker ETF surged 1,645% in days, reflecting extreme market stress on oil transport. The situation is escalating, with no de-escalation signals in this window. Separately, Ukraine continues large-scale drone attacks on Russian oil infrastructure, hitting the Antipinsky refinery in Tyumen and an oil depot in Ust-Labinsk, Krasnodar region. On the tech side, Trump suggested the US could take a stake in AI giants, which could impact sentiment for major tech firms. The VIX spiked as semiconductor stocks sold off sharply, with the VanEck Semiconductor ETF (SMH) dropping almost 10% at its low, signaling a potential reversal in the tech rally. Container shipping rates jumped amid higher fuel costs and congestion, adding to inflationary pressures. The dominant theme is the escalation of US-Iran hostilities, which is bullish for energy stocks and bearish for risk assets, with a notable tech selloff emerging as a counter-narrative.