WS #14115

The Middle East escalation narrative remains the dominant market driver, with the Strait of Hormuz crisis intensifying. President Trump's declaration that he will 'soon' declare the strait US territory, coupled with fresh attacks on two ADNOC tankers and Iran's defiant response, has kept oil prices elevated (Brent ~$88, WTI ~$82). Transit through the strait has slowed to a near standstill, with only 9 vessels crossing on Friday versus a pre-war average of 130+, and the US signaling it can maintain a naval blockade indefinitely. This is a clear escalation with direct market impact: energy names (XOM, CVX) benefit, while airlines (DAL, UAL) and shipping (MATX) face cost pressures. The S&P 500 slipped 0.2% from its record on weak retail sales and consumer confidence, but energy was the standout gainer (+1.6%). Separately, a major new data point emerged: Berkshire Hathaway's Q2 13F reveals aggressive deployment of cash under new CEO Greg Abel, adding ~48.1M shares of Alphabet (now its 3rd largest holding) and 17.5M shares of Delta Air Lines, with net stock purchases near $20B. This is a high-significance signal for GOOGL and DAL, contradicting the broader tech-selloff narrative. Also notable: Anthropic is reportedly targeting a $2T+ valuation for an October IPO, projecting $190-200B in 2028 revenue, which could reshape AI sentiment. Nvidia's downsized OpenAI data center guarantee (to <$120B) is a carry-forward item, still relevant for NVDA.