Heightened geopolitical tension and mixed corporate earnings defined the hour. In the Middle East, Iran claimed a drone strike on a Kuwaiti airbase, prompting reports the U.S. may reduce its military footprint, while the Gaza disarmament deal faces persistent skepticism. Markets are digesting a divergence in major tech, where AI-led gains for Amazon contrasted with supply-chain headwinds for Apple. Fed officials reinforced pressure for interest rate hikes to counter stubborn inflation. Regulatory scrutiny remains a central theme, highlighted by U.S. sanctions on an Iran-linked crypto scheme, a lawsuit against prediction market Kalshi, and the introduction of the FRONTIER Act for AI oversight. Elsewhere, migration-related friction between Spain and Italy intensified following a fatal border crossing in Ceuta.