Key Takeaways
- Crude oil futures reversed early losses to trade higher as the Strait of Hormuz remains effectively closed due to the ongoing U.S.-Israel-Iran conflict, keeping Brent crude near the $100 per barrel mark.
- Iran has granted a rare diplomatic exception to the Indian government, allowing two LPG tankers to transit the waterway despite a broader blockade that has halted nearly 20% of global oil supply.
- Elon Musk has ordered a fresh round of job cuts at xAI as part of a foundation-up rebuild and a planned merger with SpaceX to create a $1.25 trillion entity.
- The White House confirmed that the U.S. is in active negotiations with Cuba, with President Trump signaling that a deal to end the current oil blockade could be "easily done."
Crude oil prices turned positive on Friday as the Strait of Hormuz remains a primary flashpoint in the escalating Middle East war. Brent crude futures hovered near $100.46, while West Texas Intermediate (WTI) settled higher at $95.73 as markets braced for a prolonged disruption of the world’s most critical energy chokepoint. Analysts warn that volatility will remain elevated as long as the waterway, which handles roughly 20 million barrels of oil per day, remains impassable for most commercial traffic.
In a significant diplomatic development, Iran has reportedly granted permission for two Indian LPG tankers to sail through the strait. This move follows high-level discussions between the Indian Ministry of External Affairs and Tehran to secure the passage of approximately 20 stranded vessels. While this offers minor relief to India's energy security, vessels linked to the United States, Israel, and Europe continue to face a total blockade, sustaining pressure on global energy majors like ExxonMobil (XOM) and Chevron (CVX).
In the technology sector, Elon Musk has initiated another round of layoffs at his artificial intelligence venture, xAI. According to the Financial Times, the cuts are part of a radical reorganization intended to "improve speed of execution" after Musk admitted the company was "not built right" initially. The restructuring comes as xAI prepares for a massive merger with SpaceX, with the combined company targeting a public offering later in 2026.
The reorganization at xAI follows the departure of several founding members and a pivot toward hiring specialized product engineers from competitors. Market observers suggest the layoffs reflect Musk’s signature "hardcore" management style, similar to previous overhauls at Tesla (TSLA) and X. Despite the staff reductions, xAI is reportedly aggressively recruiting new talent to rebuild its coding and video generation capabilities from the ground up.
On the diplomatic front, the White House confirmed that the Trump administration is engaged in "high-level" talks with Cuba. A senior official stated that the President believes a deal with Havana could be "easily made," potentially ending a three-month U.S. oil blockade that has crippled the island's power grid. Cuban President Miguel Díaz-Canel confirmed the negotiations, noting that the discussions are aimed at finding a "dialogue-based solution" to bilateral differences that have pushed the nation into a severe humanitarian crisis.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.