Key Takeaways
- U.S. mortgage rates hit a 13-month high, with the 30-year fixed-rate average climbing to 6.71% for the week of Sept. 3.
- Thinking Machines Lab is in negotiations to raise at least $1 billion at a $40 billion valuation, a slight retreat from previous $50 billion targets.
- Oman has rejected Iran's proposal to impose transit fees in the Strait of Hormuz, maintaining the waterway's status as an international passage.
- Saudi Arabia adjusted its October crude pricing, setting the Arab Light OSP to the U.S. at plus $4.60/bbl over the ASCI benchmark.
- Vice President JD Vance defended the administration's Venezuela oil deal, asserting it will lower long-term energy costs for U.S. taxpayers.
Mortgage Rates Reach Highest Level Since July 2025
The U.S. housing market faced fresh headwinds this week as Freddie Mac (FMCC) reported the 30-year fixed-rate mortgage averaged 6.71%. This marks a steady climb from 6.66% the prior week and represents the highest level seen since July 2025.
Market analysts attribute the surge to "bond market jitters" and a rise in the 10-year Treasury yield. Despite the higher borrowing costs, Freddie Mac Chief Economist Sam Khater noted that purchase demand has remained relatively stable as buyers adapt to the "new normal" of elevated rates.
AI Startup Thinking Machines Lab Targets $40 Billion Valuation
Thinking Machines Lab, the AI venture founded by former OpenAI CTO Mira Murati, is reportedly in talks to raise at least $1 billion in new funding. According to The Information, the round is expected to value the company at approximately $40 billion, with venture firm Accel likely to lead the investment.
Nvidia (NVDA) has also held discussions regarding participation in the round. This proposed valuation is a notable step down from the $50 billion-plus figure the company explored late last year, reflecting a more disciplined environment for even the most high-profile AI startups.
Geopolitical Tensions Simmer in the Strait of Hormuz
In a move that averts a potential escalation in maritime costs, Oman has quietly rejected Iran's pitch to jointly charge service fees for commercial ships transiting the Strait of Hormuz. The rejection follows claims from the IRGC that a deal had been reached to monetize the strategic chokepoint.
The refusal by Muscat preserves the legal status of the strait as an international waterway. This development is critical for global energy security, as the passage handles roughly one-fifth of the world's daily oil consumption.
Saudi Arabia Sets October Crude Pricing
Saudi Aramco released its official selling prices (OSPs) for October, signaling its strategy for the coming month. The kingdom set its flagship Arab Light crude at plus $4.60/bbl versus the Argus Sour Crude Index (ASCI) for U.S. customers.
For Northwest Europe, the price was set at minus $2.15/bbl versus the ICE Brent settlement. These pricing adjustments are closely watched by global refiners as indicators of Saudi Arabia's expectations for regional demand and market share.
Administration Defends Venezuela Oil Strategy
Vice President JD Vance addressed the administration's recent oil deal with Venezuela, claiming it represents a "win" for U.S. taxpayers. Vance stated that the administration is "doing everything we can to bring down prices," while acknowledging that the current "inflation problem wasn't created in a day."
The deal aims to leverage Venezuelan reserves to stabilize global supply. However, critics continue to question the timeline for when these barrels will impact domestic gas prices, given the significant infrastructure repairs required in the region.
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.