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Oil prices fell back in early trade but remained elevated as investors kept an eye on escalating tensions between the US and Iran and progress on ships passing through the Strait of Hormuz.
At the time of writing, Brent crude was trading 1.38% lower at $112.86 while US crude, or WTI, was down 2.27% at $104 per barrel. US futures edged 0.1% higher.
Elsewhere, regional trading was thin overnight with markets in Japan, South Korea and mainland China closed for holidays.
Hong Kong’s Hang Seng fell 1.1% to 25,805.98. Australia’s S&P/ASX 200 lost 0.5% to 8,649.80, while Taiwan’s Taiex traded 0.2% lower at 40,626.22.
The fragile ceasefire between the US and Iran was tested on Monday after the US military said it had sank six Iranian small boats targeting civilian ships, while two US-flagged ships successfully passed through the Strait of Hormuz.
The key waterway for oil and gas transport remains largely closed despite repeated demands from the US for Iran to reopen the strait and as the United States imposed a sea blockade on Iranian ports. US President Donald Trump’s “Project Freedom” plan under which the United States would help guide stranded ships through the Strait of Hormuz began on Monday.
Brent crude, the international standard, surged above $114 a barrel on Monday, gaining nearly 6%. Before the war began in late February, it was trading near $70.
Meta Platforms (META) is reportedly working on a financing package for a data center in El Paso, Texas, that could total roughly $13B, underscoring Big Tech’s growing reliance on debt to bankroll the infrastructure behind the AI boom.
Morgan Stanley (
Just-in-time account funding may be right around the corner as tokenization provides real-time capabilities.
Banks, broker-dealers, and clearing agencies could soon reduce capital buffers as Depository Trust & Clearing Corporation (DTCC) moves closer to operationalizing tokenization through its subsidiary, Depository Trust Company (DTC).
The DTC—which provides book-entry custody for more than $114 trillion in assets, such as municipal bonds, corporate bonds, corporate stocks, and money market instruments from the U.S. and more than 131 other countries and territories—expects to launch a limited first phase of its tokenization service in July. The full service is scheduled to roll out in October.
In December 2025, the U.S. Securities and Exchange Commission (SEC) granted the industry utility permission for a three-year pilot to process highly liquid assets, including components of the Russell 1000 Index, exchange-traded funds that track other major U.S. indices, and various Treasuries. The intent is to give tokenized securities the same entitlements, protections, and ownership rights as assets currently held in DTC custody.
“Our vision is coming to fruition,” said Frank La Salla, president and CEO of DTCC, in Monday’s announcement. “Tokenization has the potential to reshape market structure by improving liquidity, transparency and efficiency.”
Tokenization—which creates a digital representation of a tangible asset like real estate or municipal bonds—is no longer just a finance-sector buzzword. More companies are weaving tokens into their corporate finance strategies, using them in a wide array of instruments, including smart contracts, stablecoins and tokenized U.S. Treasury bills.
The DTCC developed the tokenization platform in collaboration with the DTCC Industry Working Group, which includes more than 50 custodians, asset managers, broker-dealers, and market infrastructure providers across traditional and decentralized finance. The group is focused on aligning standards and preparing market participants for new operational and settlement workflows.
Despite the infrastructure milestone, the near-term implications for corporate treasurers may be limited.
“I don’t see a material benefit yet for CFOs,” said David Easthope, senior analyst and head of fintech research at Coalition Greenwich. “The more immediate value proposition is coming from stablecoins, not tokenized securities.” He added that the benefits for issuers, and their representatives like CFOs and treasurers, “are much further out in the tech cycle that we are in.”
Wajax Non-GAAP EPS of C$0.67, revenue of C$502.1M
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| VITAL STATISTICS |
|---|
| Location: South Asia |
| Neighbors: India and the Maldives by sea |
| Capital city: Colombo is the executive and judicial capital; Sri Jayewardenepura Kotte is the legislative capital |
| Population [2024]: 21.8 million |
| Official language: Sinhalese, Tamil |
| GDP per capita [Est. 2026]: $5,250 |
| GDP growth [Est. 2026]: 3.1%-3.3% |
| Inflation [March 2026]: 2.2%; 5.2% expected for 2026 |
| Currency: Sri Lankan rupee |
| Credit Rating (Fitch January 2026): CCC+ |
| Investment promotion agency: The Board of Investment of Sri Lanka (BOI) and the Export Development Board. The BOI has reduced the minimum investment threshold to $250,000 from $3 million. |
| Further reductions are available for tech-based branch offices. Service exports (IT/BPO) have 15% corporate tax rate. Multi-year income tax break are available for strategic development projects that exceed $50 million. Foreign owners guaranteed repatriation of capital and profits under the law. |
| Corruption Perceptions Index rank [2025]: 107/182, where 182 is the most corrupt |
| Political risk: The energy and cost-of-living crisis; risk of public unrest; bureaucratic red tape |
| Security risk: Violent crime against foreigners is rare |
Sri Lanka is rewriting its economic story. After enduring the 2022 economic collapse and the devastation of Cyclone Ditwah in late November 2025—the deadliest disaster since the 2004 tsunami—the nation has emerged with renewed global confidence. The Board of Investment (BOI) recently reported that 2025 foreign direct investment (FDI) surged by 72%, reaching a historic $1.06 billion—the first time foreign investments in the country crossed the billion-dollar threshold.
Foreign investors are not merely maintaining their existing positions but are placing fresh, long-term bets on the country’s future in the form of greenfield investments that involve the highest upfront risk and longest payback horizons, says Hirotaka Mizutani, Founder & Representative Director of management consultancy One Step Beyond.
“Notably, 24 new greenfield projects contributed $134 million, representing approximately 13% of the total FDI,” he added. “This significantly exceeds the historical norm of 2% to 10%.”
This rebound is anchored by Singapore ($318.9 million), India ($213.7 million), and France ($122.5 million), followed by the Netherlands and Luxembourg. New capital is also flowing from the US, Malaysia, and Hong Kong. By sector, manufacturing led with a 46% share of the new capital, followed by port development (26%), tourism (11%), telecommunications (6%), and property development (5%).
Although a smaller slice of the investment pie, the real estate sector is viewed as a high-upside opportunity. Indika Hettiarachchi, an independent private market investment and strategy consultant, notes that Sri Lanka’s real estate offers attractive entry costs as the economy stabilizes. He argues that by maintaining strategic neutrality, the island provides a secure alternative to Middle Eastern hubs disrupted by the Iran war.
“This reliability was strikingly demonstrated during the 2026 International Cricket Council Men’s T20 World Cup, where Colombo successfully hosted high-stakes fixtures like the India-Pakistan match, signaling to investors that the nation’s emergence as a regional center is increasingly compelling,” he adds.
Sri Lanka’s reputation as a stable “neutral zone” has increased investor confidence and capital inflows. The $3.7 billion Sinopec oil refinery project in Hambantota, finalized in 2025, is the country’s largest-ever FDI and a cornerstone in addressing its energy challenges. This commitment exceeds other major projects, including the $1.4 billion Colombo Port City development and the $700 million Adani Group terminal.
Meanwhile, China Harbour Engineering Company Port City Colombo confirmed a $300 million FDI commitment in January 2026.
Beyond securing the nation’s energy and port development, investments are diversifying into high-value niches, such as information and communication technology, renewable energy, and a “Green and Digital Economy” mandate that includes the 2030 Digital Economy Strategy and the use of quartz in the solar supply chain.
| PROS |
|---|
| Located on a major strategic shipping route between Asia and Europe |
| Fast-growing transshipment hub |
| Aims for 70% of electricity to be generated from renewable sources by 2030 |
| South Asian Free Trade Area, Asia-Pacific Trade Agreement, current EU GSP+ program valid till 2027, and the Thailand-Sri Lanka Free Trade Agreement |
| English-speaking, technologically proficient workforce |
| A 10-year residency visa is available for a $200,000 investment in government-approved investments |
Yasiru Ranaraja, Founding Director of the Belt and Road Initiative Sri Lanka, highlights that the most promising sectors are logistics, supply chain management, and high-value services.
“Sri Lanka sits directly along the main East-West shipping route, and the Port of Colombo has already become South Asia’s largest transshipment hub,” he says.
“As trade between Asia and Africa expands in what many analysts call the ‘Asian century,’ maritime traffic through the Indian Ocean is expected to grow significantly. Colombo is well-positioned to benefit from this shift.”
Corporate titans are propelling this expansion. Indian heavyweights include UltraTech Cement, a gray cement manufacturer, alongside tire leader CEAT, and energy giant Lanka IOC.
US-based Synopsys and Virtusa lead in semiconductor design and digital engineering, respectively.
Japanese firms, such as Tos Lanka, manufacture high-precision electronics, and YKK Lanka makes zippers for apparel.
| CONS |
|---|
| India-China investment competition may affect project approvals |
| Volatile currency |
| Foreigners can only lease real estate |
| Highly vulnerable to climate disasters |
| Small domestic market |
| IMF reform pressures |
| SOURCES: World Bank, KPMG Sri Lanka Budget Analysis 2026 Snapshot Report, IMF, Ministry of Finance, Economic Policy Statement 2026, Board of Investment Sri Lanka – Investment Guide 2026, Central Bank of Sri Lanka, Asian Development Bank Outlook 2026, Transparency International, www.newswire.lk, 15th Census of Population and Housing |
| For more information on Sri Lanka, check out our Country Economic Reports. |
Sri Lanka’s tourism industry is a magnet for premium global brands. Hong Kong’s Shangri-La anchors Sri Lanka’s luxury sector with properties in Colombo and Hambantota, alongside a significant presence from India’s Taj Hotels and ITC, and US leaders Hilton and Marriott.
Regional strength is further bolstered by Nepal’s CG Corp Global, which holds strategic stakes in the island’s homegrown Jetwing Hotels. With more than 20,000 new hotel room keys expected to be operational in 2026, Sri Lanka’s tourism strategy has shifted toward high-yield, experiential travel.
Facilitating this influx of capital is a package of structural incentives designed to eliminate red tape. This includes amending the Strategic Development Projects Act to allow tax holidays of up to 40 years within the Colombo Port City Special Economic Zone.
Additionally, Sri Lanka’s new Investment Protection Bill and a “single-window” approval system ensure a predictable business environment. However, while the government has committed to this initiative, “the real test will be whether it delivers genuine bureaucratic streamlining rather than a cosmetic rebranding,” argues One Step Beyond’s Mizutani.
A new Public-Private Partnership Act, expected to be introduced in the first half of 2026, will further liberalize the economy by inviting private equity into the infrastructure, energy, and telecom sectors.
It will also enhance stability through the restructuring of state-owned enterprises.
Sri Lanka’s investor-friendly landscape is underpinned by a network of four Free Trade Agreements, 28 Bilateral Investment Protection Treaties, and 46 Double Tax Avoidance Agreements.
Furthermore, while the IMF projects growth of 3.1%-3.3% for 2026, the Central Bank of Sri Lanka has upgraded its forecast to 4%-5%. Reserves are at a post-crisis high of $7 billion, supported by a 32% surge in early-year remittances and a 92% completion rate on public external debt restructuring.
Nonetheless, Sri Lanka’s staff-level agreement for $700 million confirms a return to stability, though it remains fragile.
The IMF stresses the need to build resilience against Middle East energy shocks and post-Cyclone Ditwah reconstruction. Additionally, the government must pass its anti-money laundering evaluation to avoid inclusion on the Financial Action Task Force’s “Grey List” of jurisdictions under increased monitoring for financial crime and secure a long-term recovery.
The post Sri Lanka: FDI Is on the Rise appeared first on Global Finance Magazine.
AMD earnings call likely to focus on CPU strength, MI455 progress, more: GF
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The EU Trade Commissioner Maroš Šefčovič is scheduled to meet his US counterpart Jamieson Greer on Tuesday amid rising tensions between the bloc and the US following President Donald Trump’s announcement of a potential 25% tariff on EU automobiles.
The discussions, scheduled ahead of a G7 trade ministers’ meeting in Paris, were planned before President Trump’s latest tariff threat, Euronews has learned.
But they now give both sides an opportunity to ease tensions after Trump signalled measures that would breach the EU-US trade deal agreed last summer in Turnberry, Scotland, between Trump and Commission President Ursula von der Leyen, which caps US tariffs on EU goods at 15%.
On Monday, the Commission sought to project a sense of calm.
“It’s not the first time we have seen threats,” Commission spokesperson Thomas Regnier said, adding: “We remain very calm, focused on enforcing the joint statement in the interests of our companies, of our citizens.”
Trump’s threat came after German Chancellor Friedrich Merz criticised the US approach to the war in Iran, and after Washington announced the withdrawal of 5,000 US troops from Germany, further straining transatlantic relations.
German MEP Bernd Lange (S&D), chair of the European Parliament’s trade committee, told Euronews on Monday that Trump’s threats were aimed specifically at German car manufacturers.
The US president also accused the EU of moving too slowly to implement the agreement.
“Since day one we are implementing the Joint Statement [the EU-US deal] and we are fully committed to delivering on our shared commitments,” Regnier said, adding that the EU was seeking predictability in the EU-US trade relation.
The Turnberry deal is currently being negotiated between EU governments and lawmakers before it can enter into force on the EU side. Co-legislators must still agree on the modalities for cutting EU tariffs on US goods to zero, as outlined in the agreement.
MEPs have nonetheless introduced safeguards to ensure the EU is not the only party adhering to its commitments and to protect the bloc from future US threats.
The Commission reiterated Monday that if the US takes measures that are “inconsistent” with the trade deal, all “options” remain open.
Last year, during the trade dispute that followed Trump’s return to power, the EU executive prepared a package targeting €95 billion worth of US products, though the measures were later suspended.
At the time, several EU countries also urged the use of the bloc’s anti-coercion instrument, which enables the EU to respond to economic pressure from third countries with a wide range of trade defence tools, including restrictions on licences and intellectual property rights.
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The major AI company Anthropic is exploring a potential partnership with the British semiconductor firm Fractile to secure a steady supply of chips for custom inference and reduce the significant overheads associated with current semiconductor solutions.
According to reports, these talks represent a strategic effort by the San Francisco-based firm to decrease its dependency on Nvidia whilst enhancing the speed and efficiency of its current and next-generation models.
As the global demand for generative AI capacity continues to climb, the financial burden of the hardware required to run these systems has become a primary hurdle for developers.
Anthropic, which has received multi-billion-dollar investments from both Amazon and Google, currently relies heavily on Nvidia’s H100 units alongside custom processors provided by its cloud partners.
However, the high market price and limited availability of these industry-standard chips have squeezed profit margins, prompting firms to look elsewhere.
According to industry analysts, a deal with a specialised firm like Fractile could allow Anthropic to exert greater control over its technical infrastructure.
This strategy reflects a broader trend among tech giants, including Microsoft and Meta, who are increasingly moving away from general-purpose chips in favour of internal or boutique designs.
Founded in 2022 by Oxford PhD Walter Goodwin, Fractile has gained significant attention for its unconventional approach to processor design.
Unlike standard chips that must constantly shuttle data between the processor and separate memory modules, Fractile’s “memory-compute fusion” architecture keeps data directly on the chip using static random-access memory, or SRAM, which does not need to be refreshed.
According to the British start-up, this method can run large language models up to a hundred times faster than existing hardware while lowering operational costs by 90%.
While these performance claims are impressive, the technology is still in the development phase.
Fractile has not yet launched a commercial product, and its specialised chips are not expected to be ready for full-scale data centre deployment until 2027.
Despite the long timeline, the start-up is reportedly in negotiations to raise $200 million (€170.5m) in funding at a valuation exceeding $1 billion (€853m).
The potential partnership highlights the growing significance of the UK’s semiconductor sector on the world stage. If a formal agreement is reached, Fractile could become Anthropic’s fourth major chip supplier, joining the ranks of Nvidia, Google and Amazon.
According to market reports, the discussions remain at an early stage and no binding contract has been signed.
However, the interest from a major player such as Anthropic suggests that in the AI race, the ability to deliver faster and cheaper compute power is the defining factor.
May the fourth at the box office: from $2B highs to Solo lows
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The airline sector is currently navigating a distinct performance gap as the slump in Spirit Airlines (FLYYQ) shares sparked by the company’s Saturday announcement of an immediate, orderly wind-down prompts a wider industry reassessment within the Quant rating framework.
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Crude prices were slightly lower ahead of European markets opening as traders digested comments from US President Donald Trump that Washington would help ships leave the Strait of Hormuz from today. Iran, however, has rejected the plan.
At the time of writing, the price of a barrel of US benchmark crude (WTI) was down 0.28% to $101.65 a barrel, while Brent crude, the international standard, edged down 0.06% to $108.10 a barrel.
Much hinges now on progress towards ending the war with Iran and unlocking the bottleneck through the Strait of Hormuz.
The oil market “remains the fulcrum, with hundreds of tankers, bulk carriers, and cargo ships still stranded across the Gulf, idling as storage constraints force producers to shut … production simply because there is nowhere left to store it,” Stephen Innes of SPI Asset Management said in a commentary note.
Trump said what he called “Project Freedom” would begin Monday morning in the Middle East. The US Central Command said it would involve guided-missile destroyers, more than 100 aircraft and 15,000 service members, but the Pentagon did not immediately answer questions about how they would be deployed.
In Asian share trading overnight, Hong Kong’s Hang Seng jumped 1.4% to 26,135.47. Markets in mainland China and Japan were closed for “Golden Week” holidays. In Australia, the S&P/ASX 200 slipped 0.3% to 8,704.70.
Strong buying of tech stocks pushed shares in South Korea sharply higher, as the Kospi gained 3.8%. Taiwan’s Taiex surged 4.2%.
On Friday, the S&P 500 climbed 0.3% to another all-time high of 7,230.12, closing out a fifth straight winning week. The Dow Jones Industrial Average dipped 0.3% to 49,499.27, and the Nasdaq composite added 0.9% to a record close of 25,114.44.
Apple led the way after delivering better profit than expected. Because it’s one of Wall Street’s biggest stocks in terms of overall size, its rally of 3.3% was by far the strongest force lifting the S&P 500.
Stock prices generally follow the path of corporate profits over the long term, and US companies have been exceeding expectations for earnings in the first three months of 2026. That’s even with the war with Iran and high oil prices souring confidence for many US households.
A little more than a quarter of the companies in the S&P 500 have reported already, and 84% of them have topped analysts’ estimates, according to FactSet. The index is on track to deliver roughly 15% growth in profit from a year earlier.
The main uncertainty for the global economy is where oil prices are heading because of the Iran war. Oil prices moved higher last week on worries that the war might keep the Strait of Hormuz closed for a long time, trapping oil tankers pent up in the Persian Gulf instead of delivering crude to customers worldwide.
Brent was selling for a little more than $70 per barrel before the war began, and soaring prices helped the two biggest U.S. oil companies report stronger profit for the latest quarter than analysts expected. But stock prices nevertheless fell for both Exxon Mobil, 1%, and Chevron, 1.4%, as oil prices regressed Friday and each reported drops in net income from a year earlier.
In other dealings early Monday, the dollar rose to 157.18 Japanese yen from 156.80 yen. The euro fell to $1.1724 from $1.1746.
SA Asks: How will the UAE's exit from OPEC impact the energy sector?
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Top global stories this week: Unilever, BP, Yum China among major names
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Detroit automakers warn commodity spike could add $5B in costs
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The White House’s long-anticipated cannabis regulatory shake-up may ease rules on paper, but for banks, processors, and payment networks, little changes in practice.
While the rescheduling of cannabis from Schedule I to Schedule III has sparked hope for industry reform, the reclassification doesn’t change the ongoing banking hurdles for smaller cannabis businesses in the U.S.
As large, publicly traded multi-state operators (MSOs) secure banking access, the majority of smaller cannabis companies still operate in a cash-only environment, with federal illegality, strict anti-money laundering rules, and a stalled bill blocking wider access to financial services. Alan Brochstein, an Austin, Texas-based analyst and founder of marketing firm New Cannabis Ventures, told Global Finance that meaningful reform still hinges on the passage of the SAFER Banking Act.
“Just because you’re Schedule III instead of Schedule I, you’re still federally illegal,” he said, referring to an April 23 order signed by Todd Blanche, President Donald Trump’s acting attorney general.
The reclassification formally recognizes cannabis for medical use. But the shift stops short of legalization and serves as a sobering reminder of the legal ambiguity that has kept major financial players wary.
“So, I don’t think that’s going to change,” Brochstein said. “Visa and Mastercard won’t allow processing, [and] rescheduling doesn’t change that.”
The bipartisan SAFER Banking Act, proposed in 2023, would provide a safe harbor for financial institutions serving state-sanctioned cannabis businesses, Brochstein explained. Lawmakers designed the bill to shield banks and credit unions from federal penalties and asset forfeiture when working with legal operators in compliant states. It remains stalled in Congress.
The reclassification has its benefits—expanding research, reducing tax burdens, and further legitimizing state medical programs across 40 states. Cannabis operators, however, remain boxed out of mainstream banking. Lenders, card networks, and cross-border investors are unlikely to change their stance substantially.
For now, rescheduling grants medical cannabis some legitimacy, but the financial plumbing that underpins the industry remains frozen. As a result, operators rely on cash-heavy systems and state-by-state workarounds, especially in markets where recreational sales dominate revenue.
“I don’t think the banking landscape will change that much at this time,” said Richard Ormond, a partner at Los Angeles-based law firm Buchalter, capturing the industry’s central tension as financial institutions stay on the sidelines.
“Things will remain cautious as the majority of businesses, particularly in California, really focus on recreational use rather than just medical use,” Ormond predicted.
A broader review is coming, with Congressional hearings on the SAFER Act scheduled for June. Until then, cannabis suppliers are left with incremental progress on regulation—and persistent uncertainty in the banking system.
Earnings Call Insights: Sandisk (SNDK) Q3 FY2026
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In an interview with Euronews, EU Trade Commissioner Maroš Šefčovič issued a firm warning that the European Union will not hesitate to defend its industries after Beijing signaled possible retaliation over new EU plans to bolster its industrial base.
China this week up the pressure on Brussels, threatening countermeasures unless the EU softens core elements of its “Made in Europe” proposal—designed to tighten market access for foreign companies—and its Cybersecurity Act, which could ultimately restrict Chinese telecom firms’ presence across the bloc.
Asked about China’s reaction to what the EU describes as much-needed measures to reinforce its sovereignty and restore a level playing field, Šefčovič told Euronews the EU will “always” defend the interests of its companies.
“We will fight tooth and nail for every European job, for every European company, for every open sector, if we see they are treated unfairly,” said Šefčovič in comments to Euronews in an exclusive interview Friday.
Relations between Brussels and Beijing have deteriorated sharply over the past year, with China tightening export controls on rare earths vital to Europe’s clean-tech and defence industries, as well as restricting chips essential to the automotive sector, intensifying pressure on already fragile supply chains across the bloc.
In response, the EU has pushed for legislative proposals in the domain of cybersecurity and single market rules for companies, prompting a sharp reaction from China which has accused the EU of unfair practices. Earlier this week, Beijing said the EU should not underestimate China’s “firm resolve” to safeguard its interests.
Šefčovič rejected the suggestion that recent developments signal a looming trade war but stressed that the EU does not operate under pressure and expects to be treated with respect. “We never threaten our partners, and we certainly don’t do it through the media,” he said. “What we need is strategic patience and a great deal of courage.”
He said a “war” is often easy to start, but difficult to exit. A Chinese official told Euronews Beijing does not wish for a trade spat to escalate, but said China is serious about what it considers discriminatory practices. The EU disputes discrimination.
The EU’s trade chief pointed to a ballooning trade deficit between the two sides as a cause for concern. The bloc’s trade gap with China surged to €359.3 billion in 2025, a level Šefčovič called “simply unsustainable” that does not show signs of improvement.
He also said policymakers, the European parliament and economic actors in the EU have delivered “a very strong economic and political reaction” to tackle the trade deficit.
So far, Brussels has failed to secure meaningful commitments from Beijing to rebalance trade relations. At the same time, EU officials are growing increasingly concerned that Chinese exports—shut out of the US market by higher tariffs—are being redirected towards Europe. Brussels also points to China’s overcapacity as a source of concern.
The EU is now pressing Beijing to enter serious negotiations and deliver concrete results.
“I invited the Chinese foreign minister to visit Brussels because I think we need a very thorough assessment of the current situation,” Šefčovič told Euronews. “What I want is constructive engagement.”
Faced with a surge in low-cost Chinese imports, the EU is relying on trade defence instruments to counter what it sees as dumped and heavily subsidised goods, while also monitoring efforts by Chinese firms to bypass restrictions by shifting production outside China. Šefčovič made clear the EU will not be pushed into retreat from those issues.
“There are very strong industrial policies in China. You have the same in the US, in Canada, in Japan and in Korea. So, nobody should be surprised if the European Union responds in kind—especially when it comes to public money and public funds.”
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Tesla (TSLA) has announced its first Semi electric truck off its new high-volume production line at Gigafactory Nevada.
“First Semi off high volume line,” the electric vehicle maker posted on X. According to its website, deliveries are expected to start this year.
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Brent crude, the international standard for oil prices, jumped by over 7% during early trading on Thursday, touching $126 per barrel, the highest intraday level since 2022 when Russia initiated the full-scale invasion of Ukraine.
The US benchmark crude, WTI, also rose more than 3% and hit over $110 per barrel.
At the time of writing, prices have corrected slightly with the front month contract for Brent trading at around $122 per barrel and WTI at roughly $108.5.
Prices are now the highest they have been since the start of the Iran war.
The surge in oil prices is a direct consequence of stalled negotiations over the reopening of the Strait of Hormuz, the absence of a clear path toward ending the war and a seemingly increased chance of US-Israeli military action returning.
US President Donald Trump is set to meet with the head of the US Central Command, Admiral Brad Cooper, on Thursday and receive a briefing on new military options for action in Iran, according to Axios which cites two unnamed people.
The meeting signals the potential for fresh escalation in the Middle East as the resumption of combat operations is reportedly “seriously under consideration” and oil markets have reacted swiftly to the news.
A ceasefire has held since early April but recent negotiating efforts have fallen flat with the two sides refusing to meet. Meanwhile, the US and Iran both maintain their blockade of the vital Strait of Hormuz.
US Central Command has also reportedly asked for hypersonic missiles to be sent to the Middle East, which would mark the first time the US army has deployed that type of weapon.
The persistent blockade of ports and the threat of expanded combat have fundamentally reshaped market expectations.
The spike in prices is occurring against a backdrop of significant structural change within the global oil hierarchy.
Earlier this week, the United Arab Emirates officially withdrew from the Organisation of the Petroleum Exporting Countries (OPEC) and its wider alliance (OPEC+), a move the nation claimed was necessary to prioritise its own national interests.
Under normal market conditions, the exit of a major producer from the cartel might be expected to signal a potential increase in supply or a decrease in price stability.
However, the sheer scale of the Iran war has rendered the UAE’s departure secondary in the minds of traders.
Despite the UAE’s exit, which was expected to potentially weaken OPEC’s grip on production quotas, prices have continued their upward trajectory.
This suggests that the “war premium” currently dominates all other market fundamentals.
Investors are currently less concerned with the internal politics of oil-producing nations and more focused on the immediate physical absence of Iranian crude, suspended shipping routes through the Strait of Hormuz and the threat to regional infrastructure.
However, the transition of the UAE to an independent actor still highlights a growing fragmentation in global energy governance at a time when the world’s energy security is at its most vulnerable.
After eight years as leader of the Federal Board of Governors, Jerome Powell leaves behind a considerable legacy.
Jerome Powell concluded his final Federal Reserve Open Market Committee (FOMC) meeting as chair on April 29, but said he would remain on the Board of Governors after his term as chair ends on May 15. His four-year term on the board ends January 31, 2028.
Powell’s term was marked by his decisive move at the start of the pandemic to stabilize markets, which could have faced a financial crisis comparable to 2008, said Krishna Guha, Evercore ISI’s vice chairman, in an email interview.
“The Powell Fed was slow to pivot to deal with post-pandemic inflation, but when it turned, it turned decisively, and Powell achieved the remarkable feat of bringing inflation back down without causing a recession,” he said. “Indeed, the data clearly show Powell was on the brink of delivering the fabled soft landing when Trump tariffs pushed inflation up again.”
Guha says Powell will mainly be remembered for the “dignity and professionalism that he brought to public service,” as the Fed endured “the most serious attack on central bank independence in decades, without yielding to political pressure or making the opposite error of turning hawkish in retaliation.”
The fight to preserve the Fed’s independence truly began in President Donald Trump’s second administration and has been a sustained conflict over lower interest rates. First came accusations of ballooning cost overruns during the refurbishment of the Federal Reserve’s Washington, D.C., headquarters in late July 2025. Next came the administration’s attempt to fire Federal Reserve Governor Lisa Cook a month later, citing alleged mortgage fraud.
The Department of Justice dropped its investigation into Powell on April 24, a few days before the April FOMC meeting. The Supreme Court has yet to decide on Cook’s case.
The cessation of lawfare against the Fed was welcomed by many in the Beltway, who see it as returning to business as usual.
“I felt like the accusations that Chairman Powell had committed some sort of crime connected to the building construction were a distraction, and it would delay President Trump in selecting a new chairman,” said Republican Rep. French Hill, chairman of the House Financial Services Committee, in a public statement. President Trump has nominated Kevin Warsh, a former Fed official, as Powell’s successor. A vote on his confirmation is expected in the coming weeks.
Editor’s note: This story has been updated to indicate Powell will stay on at the Fed after his term as chair ends.
