Oil worries flare as tech’s winners split from the pack
STANSSTAD, SWITZERLAND – JUNE 21: U.S. Vice President JD Vance (R) looks on next to U.S. President Donald Trump’s son-in-law Jared Kushner, as Iran’s Foreign Minister Abbas Araqchi (L) shakes hands with Pakistan’s Prime Minister Shehbaz Sharif, before the start of a quadrilateral meeting between the U.S., Iran, Pakistan, and Qatar at the Lake Lucerne Summit, aimed at advancing a deal to end the Middle East conflict at the Buergenstock Resort, Lake Lucerne on June 21, 2026 near Stansstad, Switzerland. Vance is visiting Switzerland for negotiations with Iran to end the war and open the Strait of Hormuz that have been delayed by Israeli strikes in Lebanon. (Photo by Nathan Howard-Pool/Getty Images)
Pool | Getty Images News | Getty Images
Hello, this is Justina Lee writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.
Markets are once again keeping a close eye on renewed tensions in the Middle East, which could push oil prices higher. Reports that Iran attacked a cargo ship in the Strait of Hormuz, the prospect of another major oil producer leaving OPEC and fresh disagreements between Tehran and Washington have revived concerns about energy supplies.
Investors, meanwhile, are parsing an increasingly divided tech sector. Micron’s stellar earnings and SK Hynix’s plans for a blockbuster U.S. listing sent both stocks sharply higher, but Apple’s newly announced price hikes dragged shares down 6%, highlighting continued weakness in the sector.
What you need to know today
Tensions over the Strait of Hormuz appeared to flare up again after a U.S. official told MS NOW that Iran was behind an attack on a cargo ship near the coast of Oman. The ship was sailing under a Singapore flag, according to the Wall Street Journal, raising renewed concerns over one of the world’s busiest oil shipping lanes.
Washington and Tehran are also at odds over the use of funds listed in the memorandum of understanding between the two countries. The speaker of Iran‘s parliament rejected claims by the Trump administration that the Islamic Republic’s unfrozen assets would be used to purchase U.S. agricultural products.
U.S. officials, however, maintained that any released funds would remain subject to American approval.
“As the MOU states, the United States must approve how the funds are used,” one U.S. official said. “As Vice President JD Vance announced this week, if Iranian assets are released, they will be used to purchase American agricultural products to feed the Iranian people.”
The region’s energy landscape is facing another potential source of uncertainty. Following the exit of the United Arab Emirates from OPEC in April, Iraq, the cartel’s second-largest oil exporter, is reportedly seeking a higher output quota and has warned the group it could leave if demands are not met.
Reports suggesting Baghdad could end its membership in OPEC “did not reflect the Iraqi government’s official position,” Iraq’s oil ministry said later on Thursday….
Read More: Oil worries flare as tech’s winners split from the pack