WS #14213

The dominant US-Iran narrative remains in escalation, with the Strait of Hormuz closure and naval blockade continuing to drive oil prices higher. Iran has now attacked a third vessel in the strait this week, and Tehran and Oman are working on a temporary shipping route, signaling a prolonged disruption. The White House is reportedly discussing nuclear options against Iran, and Treasury Secretary Bessent has reiterated 'unprecedented measures' next week. These developments are bullish for energy (XOM, CVX) and bearish for airlines (DAL, UAL) and shipping (MATX, ZIM). Separately, AI server demand is surging: DELL +5% and Super Micro +13% on blowout guidance, while AMD is up 6.5% to $514.39, and Micron is highlighted as a cheap pure-play memory play at 21.9x earnings. Apple is testing Chinese DRAM from CXMT, which could pressure memory pricing but supports supply-chain diversification. OpenAI disbanded its preparedness team ahead of its IPO, a governance concern. Canada-US trade talks are ongoing ahead of the Aug 19 tariff deadline, with LeBlanc meeting USTR Greer today; a 50% tariff on Canadian goods is set to take effect Wednesday unless a deal is reached. Colombia's president asked Trump to suspend tariffs to aid earthquake recovery. Russia's MOEX index fell 4.29%, and Ukraine launched one of its largest drone attacks on Russia, killing at least 6, with a NATO jet downing a drone over Romania. The US 20-year bond sale this week will test demand as the yield curve steepens.