Key Takeaways
- President Trump signaled a willingness to accept higher oil prices as a byproduct of U.S. strikes on Iran, stating that while prices are currently falling, certain actions may be taken to increase them.
- Iran has threatened to close the Strait of Hormuz, a critical global oil chokepoint, if the country is struck, while the U.S. military reportedly stands ready to restart a maritime blockade.
- China is planning to allow top AI firms including Alibaba (BABA), ByteDance, and DeepSeek to purchase limited amounts of Nvidia (NVDA) H200 chips for training public data.
- Russia is grappling with a "complex" domestic fuel situation, leading to a ban on diesel exports, a reduction in gasoline production, and the confirmation of fuel imports to stabilize the market.
- U.S. gasoline inventories fell by 1.9 million barrels, a smaller draw than the previous week's 2.33 million, yet Brent and WTI crude futures maintained gains following the data release.
Trump Signals Shift in Oil Policy Amid Iran Tensions
U.S. President Donald Trump has indicated a significant shift in energy and foreign policy, stating that he views an increase in oil prices as "acceptable" if it results from U.S. strikes against Iran. While Trump noted that oil prices have been falling significantly, he explicitly mentioned that the administration might "do some things that could increase oil price" to achieve geopolitical objectives.
Complementing this stance, U.S. Treasury Secretary Scott Bessent suggested that U.S. oil should perhaps trade at a premium. These comments come as the administration prepares to remove Syria from the terrorism sanctions list, with Trump suggesting that Syria could play a role in assisting Lebanon and Hezbollah.
Escalation in the Strait of Hormuz
The geopolitical standoff in the Middle East has intensified, with Iran’s Press TV reporting that Tehran will shut down the Strait of Hormuz if it faces new attacks. Security sources in Iran further claimed that the country is prepared to attack "enemy" targets at a ratio of at least two to one in the event of a conflict.
In response, a U.S. official told Fox News that the U.S. military is ready to restart a blockade of ships to and from Iranian ports if ordered. Despite the rhetoric, UK Prime Minister Keir Starmer emphasized the importance of returning to a ceasefire, noting that the NATO summit showed a united front among allies.
China Eyes Limited Access to Nvidia H200 Chips
In a major development for the semiconductor industry, Chinese officials have reportedly informed top AI companies that they may soon receive permission to acquire Nvidia (NVDA) H200 chips. According to The Information, firms like Alibaba (BABA), ByteDance, and DeepSeek would be allowed to buy limited quantities specifically for training public data.
The approval comes with strict stipulations, as the chips are not to be used for processing sensitive customer information. This move represents a potential softening of tech restrictions, though the "limited amount" suggests that U.S. export controls continue to heavily influence the flow of high-end AI hardware into China.
Russia Restricts Fuel Exports Amid Supply Strain
Russian Deputy Prime Minister Alexander Novak confirmed that Russia has implemented a ban on diesel exports and is reducing gasoline production to address a "complex" domestic situation. To maintain supply, Russia is boosting the production of low-class fuel and has begun confirming fuel imports from neighboring allies.
These internal supply pressures coincide with broader regional instability. Meanwhile, in Northern Europe, Greenland's Prime Minister reaffirmed the country's sovereignty, stating that repeated requests for a takeover or control of the territory will not alter their independent status.
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.