Good morning. Oil surges as Iran picks Khamenei's son as supreme leader, but comes off a tad after the Financial Times reported about talks on a possible coordinated release of reserves. Asian shares slide in a volatile session. And the latest search for Malaysia Airlines' MH370 comes up empty.
Crude oil surged as much as 29%, the biggest intraday move since April 2020, as more Gulf producers curbed production and Iran named the son of the late Ayatollah Ali Khamenei as its new supreme leader. Gains were pared after the FT said the Group of Seven finance ministers will discuss a possible joint release of oil from reserves, in coordination with the International Energy Agency. President Donald Trump downplayed the oil spike a "small price to pay," with neither side showing any sign of deescalating a war now entering its 10th day.
Iran named Mojtaba Khamenei as its supreme leader -- a man likely to continue his father's hardline approach to rule, and resist the US and Israel's military campaign. Trump is "not happy" with the appointment, according to Fox News, and had previously denounced Khamenei as an "unacceptable" choice.
More on Iran: Trump is weighing the option of deploying special forces on the ground to seize Iran's near-bomb-grade uranium, as officials grow increasingly concerned the stockpile may have been moved, according to three diplomatic officials briefed on the matter.
A veteran market strategist, who has gotten calls right in the past, said US stocks are facing a growing risk of a sharp selloff this year as the escalating war in Iran hurts global markets. Ed Yardeni updated his outlook and raised the probability of a market meltdown to 35% for the rest of the year, up from 20% previously.
Norway is investigating whether an explosion outside the US Embassy in Oslo is linked to the war. The blast caused minor damage and police are looking for one or more suspects, with no casualties reported.
More Top Stories
Deep Dive: Why the AI Boom Makes Cars More Expensive
AI demand is triggering a historic memory-chip shortage. That will make meeting exponential demand for chips expensive -- and maybe even impossible.
- Tech giants are buying up memory chips like never before, and paying a premium for multiyear contracts.
- That's prompted chipmakers to allocate more of their production to these higher-margin orders, leaving fewer memory chips available for things like consumer devices and cars.
- Prices have surged almost 700% in some cases.
The Big Take
Private Credit's Gate-Crashers Are Forcing Funds Into a Brutal Spot
The world's largest alternative asset managers are confronting a painful choice: Block investors who want to exit private debt funds and deal with potential blowback, or honor the requests and betray their guiding principles.
Opinion
Iran's strategy is to choke off oil flows through the Strait of Hormuz, driving up global gasoline prices and forcing Trump to abandon the war under economic pressure, Javier Blas writes. The plan could falter if Saudi Arabia and the UAE successfully use alternative pipelines to cushion the oil shock.
Before You Go
Twelve years after Malaysia Airlines flight MH370 disappeared, the latest search for the aircraft has produced no new clues about its location. Ocean Infinity, which signed a "no find, no fee" agreement with the Malaysian government, surveyed about 7,571 square kilometers of seabed.
A Couple More
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