WS #9135

The US-Iran conflict continues to escalate, with the US striking Iranian coastal radar sites after shooting down Iranian drones targeting the Strait of Hormuz. Iran retaliated by launching ballistic missiles toward Kuwait and Bahrain, though most were intercepted. Kuwait condemned the attacks as a 'flagrant violation' of international law. This directly threatens oil supply through the Strait of Hormuz, supporting bullish energy sentiment. Separately, Ukraine launched a massive drone attack on Russia, with nearly 380 drones shot down, including strikes on oil infrastructure near St. Petersburg during the St. Petersburg International Economic Forum. This adds to supply-side risks for energy markets. On the tech side, Trump suggested the US could take a stake in AI giants, which could impact sentiment for major tech firms. The blowout jobs report is seen as bad news for stocks but not forcing the Fed's hand on rates. Bitcoin cratered below $60,000, with Strategy (formerly MicroStrategy) liquidating part of its reserves, amplifying selling pressure. 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.