WS #9435

The US-Iran military conflict is actively escalating with multiple corroborating sources confirming a third wave of US strikes targeting Iranian air defense systems and military installations in southern Iran. Iran's Revolutionary Guards have responded by attacking the US Fifth Fleet in Bahrain with drones and warning of 'more severe responses'. Reports indicate ballistic missiles launched from Isfahan, suggesting Tehran's promised retaliation is underway. This escalation directly threatens Strait of Hormuz shipping, with Polymarket contracts showing elevated probability of disruption. Oil prices are reacting, with WTI crude likely to test $90+ levels. The conflict counters any de-escalation thesis and is the dominant market-moving signal. Separately, Seattle enacted a year-long ban on new AI datacenters, which is a negative signal for tech infrastructure plays but limited near-term impact. Google cut AI Plus subscription price from $7.99 to $4.99, intensifying AI subscription price wars and pressuring pure-play AI providers. US stock futures are falling amid the Iran strikes and tech weakness, with CPI data awaited. Insider selling at DELL and TSLA CFO selling are noise relative to the geopolitical signal.