{"id":59457,"date":"2026-03-05T17:38:34","date_gmt":"2026-03-05T21:38:34","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/geopolitical-tensions-flare-in-middle-east-as-costco-and-marvell-post-earnings-beats\/59457\/"},"modified":"2026-03-05T17:38:34","modified_gmt":"2026-03-05T21:38:34","slug":"geopolitical-tensions-flare-in-middle-east-as-costco-and-marvell-post-earnings-beats","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/geopolitical-tensions-flare-in-middle-east-as-costco-and-marvell-post-earnings-beats\/59457\/","title":{"rendered":"Geopolitical Tensions Flare in Middle East as Costco and Marvell Post Earnings Beats"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Costco and Marvell Technology both exceeded analyst expectations<\/strong> in their latest quarterly reports, with Marvell issuing a surprisingly strong revenue forecast for the coming quarter driven by <strong>robust AI demand<\/strong>.<\/li>\n<li><strong>Geopolitical conflict in the Middle East intensified<\/strong> as Iran launched multiple missile salvos toward Israel, while a drone strike forced the suspension of production at the <strong>HKN Energy<\/strong>-operated Sarsang oilfield in Iraqi Kurdistan.<\/li>\n<li><strong>The U.S. government is considering invoking the Defense Production Act<\/strong> to accelerate offshore drilling by Sable Offshore Corp (<a href=\"\/stock\/SOC\">SOC<\/a>) in California, potentially overriding significant state-level permitting barriers.<\/li>\n<li><strong>A new four-tier framework for AI chip exports<\/strong> is under consideration by U.S. officials, which could require companies to invest in domestic data centers for high-volume shipments exceeding 200,000 units.<\/li>\n<li><strong>OpenAI integrated professional financial data<\/strong> from FactSet, S&amp;P Global (<a href=\"\/stock\/SPGI\">SPGI<\/a>), and LSEG into ChatGPT, alongside a new beta launch of ChatGPT for Excel to enhance financial modeling.<\/li>\n<\/ul>\n<h2>Corporate Earnings: Costco and Marvell Outperform<\/h2>\n<p>Costco Wholesale Corp (<a href=\"\/stock\/COST\">COST<\/a>) reported strong second-quarter 2026 results, posting an <strong>earnings per share (EPS) of $4.58<\/strong>, which beat the consensus estimate of $4.55. Total revenue reached <strong>$69.60 billion<\/strong>, slightly ahead of the $69.27 billion expected by analysts. The retailer&#39;s comprehensive sales growth, excluding gas and currency fluctuations, rose by <strong>6.7%<\/strong>, surpassing the anticipated 5.9% as membership loyalty remained near record highs.<\/p>\n<p>Marvell Technology (<a href=\"\/stock\/MRVL\">MRVL<\/a>) also delivered a &quot;double beat&quot; for its fourth quarter of 2025, reporting <strong>adjusted earnings of 80 cents per share<\/strong> on revenue of <strong>$2.22 billion<\/strong>. The company\u2019s outlook for the first quarter was particularly bullish, with revenue projected at <strong>$2.4 billion<\/strong>, significantly higher than the $2.265 billion analyst estimate. CEO Matt Murphy noted that <strong>AI-driven data center demand<\/strong> is accelerating bookings at a record pace, positioning the firm for continued growth in fiscal 2027.<\/p>\n<h2>Middle East Conflict and Energy Disruptions<\/h2>\n<p>Geopolitical instability surged on Thursday as <strong>Iran launched a new series of missile strikes<\/strong> toward Israel, identified by state media as part of &quot;Operation True Promise 4.&quot; The escalation follows reports of <strong>Israeli forces bombing Hezbollah targets<\/strong> in southern Beirut. In Iraq, an explosion was reported near Victoria Base close to Baghdad International Airport, though U.S. officials denied separate reports claiming a U.S. fighter jet had been shot down over Basra.<\/p>\n<p>The conflict had a direct impact on energy infrastructure as <strong>production at the Sarsang oilfield<\/strong> in Iraqi Kurdistan was suspended following a drone strike. The field is operated by the American firm <strong>HKN Energy<\/strong>. This disruption comes as the U.S. considers utilizing the <strong>Defense Production Act<\/strong> to fast-track drilling projects for Sable Offshore Corp (<a href=\"\/stock\/SOC\">SOC<\/a>) in California. The move would aim to bypass state regulatory hurdles that have long delayed the restart of critical offshore pipelines.<\/p>\n<h2>AI Regulation and Tech Integration<\/h2>\n<p>The U.S. is weighing a <strong>new four-tier regulatory framework<\/strong> for the export of advanced AI chips from leaders like Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and AMD (<a href=\"\/stock\/AMD\">AMD<\/a>). Under the proposed rules, shipments of more than <strong>200,000 units<\/strong> could be contingent on companies meeting strict security conditions or committing to investments in U.S.-based AI data centers. This policy shift reflects growing concerns over the global diffusion of high-end computing power.<\/p>\n<p>Simultaneously, <strong>OpenAI<\/strong> moved to solidify its presence in the professional finance sector by launching integrations with major data providers, including <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Factiva, FactSet, and S&amp;P Global (<a href=\"\/stock\/SPGI\">SPGI<\/a>)<\/strong>. The company also introduced <strong>ChatGPT for Excel in beta<\/strong>, a tool designed to assist users in building complex financial models using natural language. These updates follow reports that OpenAI\u2019s annualized revenue has topped <strong>$25 billion<\/strong>, underscoring the rapid commercialization of generative AI.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Costco and Marvell Technology both exceeded analyst expectations in their latest quarterly reports, with Marvell issuing a surprisingly 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