U.S. President Donald Trump has intensified threats against Iran, warning of potential bombings of infrastructure if Iran continues its aggression in the Strait of Hormuz and the Red Sea. This escalation comes as Houthi rebels have attacked shipping in the Bab al-Mandeb strait, a critical oil chokepoint.
The situation is causing anxiety in energy markets, with Brent crude oil prices rising over 3% to $94.07 per barrel, and U.S. West Texas Intermediate crude also gaining about 3% to $86.83. In the tech sector, Alphabet reported strong revenue growth driven by its cloud business, but shares fell due to a significant increase in capital expenditures planned for 2026.
Meanwhile, Tesla's earnings fell short of expectations despite higher revenue, impacted by rising costs, and IBM lowered its 2026 forecast after reporting weaker earnings. Samsung has launched new foldable smartphones at higher prices, attributed to increased component costs driven by AI demand and supply shortages