Global markets are on edge due to rising oil worries in the Middle East, stemming from renewed U.S.-Iran tensions over funds and a reported Iranian attack in the Strait of Hormuz, alongside Iraq’s potential departure from OPEC. 
Concurrently, the tech sector is seeing a clear split, with Micron surging on AI demand while Apple’s shares tumbled after price hikes. Federal Reserve officials also weighed in on inflation, offering mixed outlooks.
Welcome to this edition of CNBC's Daily Open. Global markets are once again gripped by escalating tensions in the Middle East, a situation that threatens to push oil prices higher. Renewed concerns about energy supplies stem from reports of an Iranian attack on a cargo ship in the critical Strait of Hormuz, the potential departure of a major oil producer from OPEC, and fresh disagreements between Tehran and Washington.
Meanwhile, the technology sector presents a starkly divided picture for investors. While memory manufacturer Micron celebrated blockbuster earnings, sending its stock soaring by 15%, and SK Hynix eyed a significant U.S. listing, other tech giants faltered. Apple, for instance, experienced its largest one-day decline since April 2025 following price hikes on its MacBooks and iPads, signaling ongoing volatility and selective weakness within the sector.
A U.S. official recently confirmed that Iran was behind an attack on a Singapore-flagged cargo ship near the coast of Oman, according to MS NOW and the Wall Street Journal. This incident reignites concerns over the safety and security of the Strait of Hormuz, one of the world's most vital oil shipping lanes.
Further exacerbating tensions, Washington and Tehran remain at odds over the use of funds outlined in their memorandum of understanding. Iran's parliament speaker refuted claims by the Trump administration that its unfrozen assets would be designated for purchasing U.S. agricultural products. However, U.S. officials maintain that any released funds would require American approval, with Vice President JD Vance emphasizing their intended use for American agricultural goods to feed the Iranian populace.
The energy landscape faces additional uncertainty with Iraq, OPEC's second-largest oil exporter, reportedly seeking a higher output quota. There were warnings that Iraq might consider leaving the cartel if its demands are not met, following the United Arab Emirates' exit from OPEC in April. Although Iraq's oil ministry later clarified that such reports did not reflect its official position, it underscored the growing internal strains within the alliance by reiterating the importance of reviewing oil production quotas.
The tech sector, in contrast, showcased a split performance. Memory maker Micron surged an impressive 15% after announcing stellar earnings, driven by the booming demand for memory spurred by artificial intelligence. However, this success did not translate into a broader rally for Asian chip stocks, which reversed course on Friday. SK Hynix fell over 3%, and SoftBank Group tumbled 11%, as investors grew increasingly wary of the mounting costs associated with AI infrastructure. Adding to the sector's woes, Apple shares slid more than 6% overnight, marking their steepest decline since April 2025, after the company revealed price increases for MacBooks and iPads, presenting another challenge for the industry.
Meanwhile, Federal Reserve officials offered differing views on inflation. Chicago Federal Reserve President Austan Goolsbee stated that inflation is still trending in the wrong direction despite some positive indicators. A few hours later, New York Fed President John Williams expressed expectations for inflation readings to begin trending lower. Goolsbee, during a live CNBC interview, refrained from speculating on interest rate movements, reiterating his focus on inflation, a sentiment echoed by new Fed Chairman Kevin Warsh a week prior.
