Daily News
Renewed U.S.-Iran Clashes in Hormuz Rattle Markets as Peace Deal Hangs in the Balance
08 May 2026
Today in Brief
Markets came under pressure as fresh U.S.-Iran exchanges of fire in the Strait of Hormuz strained the fragile ceasefire, pulling the S&P 500 back from record highs while oil and gold saw renewed volatility. The UAE also reported intercepting Iranian missiles and drones amid the regional flare-up.
In corporate news, OpenAI launches a cybersecurity-focused AI model, Nvidia commits up to $2.1 billion to data center operator IREN, and CoreWeave raises its capex outlook as component costs rise.
Asia-Pacific markets fall as renewed U.S.-Iran clashes keep investors on edge
Asia-Pacific markets traded lower Friday, as concerns grew over renewed hostilities between Iran and the U.S. amid a fragile ceasefire. The U.S. and Iran traded fire in the Strait of Hormuz, with each side claiming the other initiated the attack. Despite the escalation, President Donald Trump insisted that the ceasefire remains in effect, saying the strikes are "just a love tap" during a call with an ABC News reporter later Thursday. Trump later claimed in a subsequent Truth Social post that the U.S. "completely destroyed" the Iranians involved in the exchange, which he said included small boats and drones that "dropped ever so beautifully down to the Ocean, very much like a butterfly dropping to its grave!" He reiterated that Iran will face further attacks if they do not agree to a nuclear deal.
S&P 500 pulls back from record as investors eye oil prices and Iran deal developments
The S&P 500 fell on Thursday after hitting a new all-time intraday high as oil prices came back from sizable losses, with traders eyeing more developments between the U.S. and Iran. The broad market index fell 0.38% to close at 7,337.11, dragged lower by losses in Amazon as well as semiconductor stocks such as Broadcom and Micron Technology. The Nasdaq Composite slid 0.13% and ended at 25,806.20. The tech-heavy index had also scored a fresh all-time high during the session. The Dow Jones Industrial Average shed 313.62 points, or 0.63%, settling at 49,596.97.
Gold rose above $4,700 an ounce on Friday after experiencing sharp volatility in the previous session
Gold rose above $4,700 an ounce on Friday after experiencing sharp volatility in the previous session, even as renewed clashes between the US and Iran weakened hopes for a near-term peace agreement and reignited inflation concerns. US Central Command said American forces intercepted Iranian attacks and launched defensive strikes while guided missile destroyers moved through the Strait of Hormuz, while stressing that the military does not seek further escalation. Meanwhile, the Trump administration is awaiting Iran's response to a proposal aimed at reopening Hormuz and ending the nearly 10-week conflict, with reports indicating that Tehran is expected to respond through Pakistan within the next two days.
WTI crude futures climbed toward $96 per barrel on Friday, recouping some losses from earlier
WTI crude futures climbed toward $96 per barrel on Friday, recouping some losses from earlier in the week as fresh clashes between the US and Iran threatened to derail diplomatic efforts to end the conflict. US Central Command said American forces intercepted Iranian attacks and carried out defensive strikes while guided missile destroyers passed through the Strait of Hormuz, emphasizing that the military does not intend to escalate tensions further. Meanwhile, the Trump administration is awaiting Iran's response to a proposal aimed at reopening Hormuz and ending the nearly 10-week conflict, with tensions remaining elevated across both the Persian Gulf and Lebanon. According to reports, Tehran is expected to deliver its response through Pakistan within the next two days.
Iran focus at Trump-Xi summit may delay progress on tariffs, rare earths
The Iran war is likely to take center stage in the summit between U.S. President Donald Trump and China's Xi Jinping, leaving less scope to resolve issues like tariffs and rare earth supplies. U.S. Treasury Secretary Scott Bessent has already said that Iran will be a topic in the meetings, which are due to take place May 14 and 15. And earlier this week, China hosted Iran's foreign minister for the first time since the war began in late February -- raising hopes for a peace deal, sending oil prices lower and fueling stock-market gains. The U.S. government declined China's invitation to organize industry-specific meetings between senior Chinese leaders and U.S. CEOs, thinking it could make American businesses appear too close to Beijing, according to a U.S. executive with direct knowledge of the arrangements.
U.S. and Iran trade fire in Strait of Hormuz; each claims other shot first
The U.S. and Iran opened fire in the Strait of Hormuz, with each side claiming the other initiated the attack. The renewal of hostilities further imperils the two countries' ceasefire agreement, which had already been badly damaged by repeated accusations that its terms are being breached. President Donald Trump, in a call with an ABC News reporter later Thursday, insisted that the ceasefire remains in effect, saying the strikes are "just a love tap." In a subsequent Truth Social post, Trump claimed the U.S. "completely destroyed" the Iranians involved in the exchange, which he said included small boats and drones that "dropped ever so beautifully down to the Ocean, very much like a butterfly dropping to its grave!"
UAE says engaging drones, missiles originating from Iran amid M.East flare-up
The United Arab Emirates said on Friday it was intercepting missile and drone attacks originating from Iran, amid a flare-up in Middle East tensions after renewed U.S.-Iran hostilities in the Strait of Hormuz. "UAE Air Defences system are actively engaging with missiles and UAV threats," the country's Ministry of Defense said in a statement. The reported attacks come just after the U.S. military said on Thursday it had responded to Iranian attacks on three American warships transiting Hormuz. The latest round of military escalation was sparked chiefly by the U.S. launching an operation aimed at reopening commercial shipping in Hormuz. But Washington said it had paused the operation after attacks by Iran on vessels in Hormuz earlier this week.
European Union trade committee chair says deal with US still needs work
European Union lawmakers are making progress toward an agreement on legislation underpinning the EU-U.S. trade agreement, but "there is still some way to go," the EU parliament's trade committee chair Bernd Lange said on Wednesday. Lange said a second round of talks with EU governments had narrowed differences on parts of the proposed rules, including a safeguard mechanism and provisions on how the agreement will be reviewed and evaluated. Negotiators are due to meet again on May 19 in Strasbourg, the European Parliament said in a statement. "We remain more committed than ever to advance and defend Parliament's mandate so as to provide additional guarantees that will benefit citizens and companies in both the EU and the U.S.," Lange said.
OpenAI rolls out new model for cybersecurity teams a month after Anthropic's Mythos debut
OpenAI on Thursday announced that GPT-5.5-Cyber, a variation of its latest artificial intelligence model, is rolling out in a limited preview capacity to vetted cybersecurity teams, a month after rival Anthropic captivated investors and government officials with Claude Mythos Preview. The preview of GPT-5.5-Cyber is not intended to be a major step up in terms of cyber capability, but is instead trained to be more permissive on security-related tasks, OpenAI said in a blog post. OpenAI announced GPT-5.5 late last month. With the cyber-specific version, vetted teams will have an easier time using OpenAI's latest model for workflows like vulnerability identification and triage, patch validation and malware analysis, the company said. The safeguards built into the generally available GPT-5.5 model would have made that more challenging.
Citigroup targets stronger profitability as CEO Fraser drives overhaul
Citigroup laid out stronger profitability targets for the next two years at its investor day on Thursday, as CEO Jane Fraser spearheads a company-wide overhaul to drive growth. Six years into her tenure, Fraser is heading her second investor day to present the results of a massive reorganization that shrank Citi by selling retail businesses worldwide, eliminating management layers and increasing risk and controls. "This is a bank built both to grow and perform consistently, and that's what underpins the path to our target returns," she said. Citi set a target range for adjusted return on tangible common equity of 11% to 13% for 2027 and 2028. That compares with its goal to achieve 10% to 11% for the current year and its 2025 return of 8.8%. The metric is an important industry figure that measures profitability on tangible assets.
CoreWeave signals higher capex as component costs rise, shares fall
CoreWeave Inc raised the lower end of its annual capital expenditure forecast on Thursday, citing a rise in the prices of components, sending the cloud infrastructure technology company's shares down more than 9% in extended trading. Demand for services from the so-called neoclouds, such as CoreWeave and Nebius, has skyrocketed as tech companies seek the hardware and cloud capacity needed for AI technologies. CoreWeave lifted the lower end of its 2026 capital expenditure to $31 billion from $30 billion while keeping the upper range unchanged at $35 billion. "We are on a fantastic ramp through the balance of this year into 2027 - the why the market takes me up or down on any given day is sort of what the market does," CoreWeave CEO Michael Intrator told Reuters in an interview.
Nvidia to invest up to $2.1 billion in IREN as part of AI data center deal
Nvidia will invest up to $2.1 billion in data center operator IREN, as part of a broader deal to deploy up to 5 gigawatts of infrastructure to keep up with soaring artificial intelligence demand. The tie-up, announced on Thursday, underscores the hunger for computing power amid surging adoption of AI, as frontier model developers and Big Tech firms funnel billions to secure capacity. Shares of IREN were up around 9% in extended trading. The stock had closed at $56.85 in regular hours. IREN has issued to Nvidia a five-year right to buy up to 30 million shares at an exercise price of $70 per share. All four U.S. tech giants reported results last week and signalled AI spending would not slow, with combined outlays set to surpass $700 billion this year.
