U.S. President Donald Trump’s anticipated deal with Iran appears to be on the verge of collapse, as Tehran announced plans to bar U.S. and Israeli ships from the critical Strait of Hormuz, a move swiftly rejected by Washington. This geopolitical tension sent oil prices climbing, while copper reached a record high driven by supply constraints and electrification demand. In the tech sector, SpaceX shares rose after a lockup expiry, but SoftBank shares fell despite reporting an earnings beat.
Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.
U.S. President Donald Trump had optimistically hinted at a deal with Tehran by Thursday, but as the hours tick away, escalating rhetoric from Iran suggests this timeline is unlikely to yield an agreement. The potential collapse of this deal casts a long shadow over global stability and markets.
The situation intensified with Iran reportedly revealing a stringent plan for managing the Strait of Hormuz, a critical global choke point. Under this new plan, U.S. and Israeli vessels would be barred from using the waterway, with restrictions extending to "countries and individuals that have caused damage to Iran" until reparations are made. Washington has vehemently rejected this, with U.S. officials asserting that any temporary routes must be free of impediments, approvals, or charges.
U.S. Treasury Secretary Scott Bessent speaks to reporters as U.S. President Donald Trump stands next to him aboard Air Force One en route to Tokyo, Japan, for the second stop on his Asia tour, Oct. 27, 2025. Evelyn Hockstein | Reuters
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This geopolitical tension immediately reverberated through commodity markets. Oil prices, which had seen declines earlier in the week, climbed significantly on this development. Brent futures surged 3.8% to close at $82.49 per barrel Thursday, while U.S. West Texas Intermediate gained about 2.8% to settle at $77.29, with gains extending into Friday's Asian trading.
Oil wasn't the only commodity making headlines. Copper, the essential 'red metal' vital for construction, electronics, transportation, and increasingly, AI applications, soared to a record high of around $6.90 a pound on Thursday. This surge is attributed to persistent supply constraints coupled with burgeoning demand for electrification.
Away from the geopolitical stage, the tech sector saw mixed fortunes. SpaceX, the aerospace company founded by Elon Musk, rose after the first tranche of its locked-up shares became available for trading on Thursday, increasing the volumes available to investors. However, shares are still approximately 50% off their mid-June high.
Meanwhile, Japanese conglomerate SoftBank experienced a drop in its shares, extending losses by nearly 5% in early Friday trade. This occurred despite the company reporting an earnings beat, fueled by gains from its Intel stake and a higher valuation for its ByteDance investment. Investor sentiment around the AI-focused firm appears to remain cautious.
— Lim Hui Jie
And finally...
From birth to brokerage: Why South Korea is seeing a surge in infant investment accounts
In South Korea, a fascinating trend is emerging as parents intensify efforts to grant their children an early advantage in building long-term wealth. Many are opening investment accounts for their offspring even before they are old enough to crawl.
Mirae Asset Securities, South Korea's largest brokerage by market capitalization, reported a near tripling of brokerage accounts for children under the age of one to approximately 15,000 in June, compared to a year prior. Furthermore, new account openings for those under nine years old have jumped by almost 60% to around 185,000, excluding duplicate accounts, signaling a significant shift in parental financial planning.
— Justina Lee, Lisa Kim
