Global tensions escalated as Iran announced strikes against U.S. assets in Kuwait and Bahrain following a drone attack in Egypt and a warning to Cyprus regarding foreign military bases. This geopolitical friction is impacting the broader economy, with analysts linking rising French inflation to energy price volatility stemming from the Iran conflict. Amid this uncertainty, markets remain focused on the artificial intelligence sector; Amazon reported strong cloud growth and signaled massive capital expenditure increases to meet demand, while Asian semiconductor stocks rallied. In significant energy sector shifts, BP has put its U.K. North Sea business up for sale, effectively ending sixty years of production. Meanwhile, central bank policy remains a primary driver of market volatility, as the Bank of Japan held interest rates at 1% while warning that core inflation is on track to exceed its 2% target.