WS #9308

The dominant theme is the escalating Iran-Israel conflict, which is now in an active exchange of strikes. Multiple sources (Al Jazeera, AP, social media) report that Israel launched strikes on military targets in Tehran, Tabriz, and Isfahan after Iran fired ballistic missiles at Israel in retaliation for an Israeli raid on Beirut's Dahiyeh suburb. This marks a significant escalation from the previous ceasefire, with Iran adopting a new 'strategic doctrine' of immediate retaliation. The Strait of Hormuz disruption is expected to persist into 2027, with prediction markets pricing a 66% chance of no normal flow before January 2027. This supports oil prices and energy stocks while pressuring airlines and shipping. However, a counter-signal emerged: Iran lifted flight restrictions and reopened its airspace, and Israel reopened the Kerem Shalom and Rafah crossings for humanitarian aid, suggesting a potential de-escalation. Separately, Apple's WWDC 2026 keynote is underway, with expectations for AI Siri and iOS 27 updates, which could drive AAPL. The chip sector is rebounding after Friday's selloff, with Intel leading gains on reports that Nvidia and Google are considering it as a backup chipmaker. JPMorgan traders have turned tactically cautious on stocks, citing bond market volatility and tech selling. The SpaceX IPO is set for Friday, with Morningstar valuing it at half the IPO price, creating potential volatility. The US economy is defying the Middle East war with reacceleration, per TS Lombard.