The US and Iran have an "in principle agreement" to pursue further diplomacy and restart negotiations about a longer-term peace deal, the Associated Press reported. But traffic through the Strait of Hormuz remains severely constrained, and President Donald Trump's bid to block Iran from using it is angering China.
Trump stirred tentative market hopes for a resolution to the conflict yesterday, claiming the near seven-week war is "close to over." A senior Iranian military official, however, said a prolonged US blockade of Hormuz would be "a prelude to a breach of the ceasefire."
Shipping through Hormuz remains far below peacetime levels. Ship-tracking data Bloomberg has compiled show only 11 commercial ships were observed sailing through the strait yesterday. Last year, transits averaged 135 a day.
The US blockade prevents Iranian oil from reaching China, a major customer, and raises the risk of a confrontation between Chinese-aligned vessels and American Navy ships. China's Foreign Ministry in Beijing blasted the US president's naval blockade imposed this week as "dangerous and irresponsible."
Trump is scheduled to meet Chinese President Xi Jinping next month in Beijing in the first visit to the nation by a US president since 2017. -- Philip Lagerkranser
What You Need to Know Today
Trump has said again that he would fire Jerome Powell if the Fed chair does not step down "in time," though it's unclear he has the legal power to do so without sufficient cause. Powell, whose stint leading the central bank ends in May but whose term on Board of Governors runs until 2028, has said he'd serve as chair pro tempore unless his successor is confirmed by May. Trump, who blames Powell for being too slow in cutting interest rates, also said he would not drop the Justice Department investigation into the central bank leader.
The Iran war is hammering luxury-goods makers, with Hermès joining Kering and LVMH in reporting weak first-quarter sales. Hermès shares sank today after it said sales fell in the Middle East, home to some of the world's biggest spenders. "We had beautiful growth at double digit rates in January and February but March ground to a halt" in the region, Hermès CFO Eric du Halgouet said.
Saudi Arabia's sovereign wealth fund is seeking to boost returns as the kingdom deals with the economic costs of the Iran war. The Public Investment Fund today announced a series of priorities, including increasing the role of the private sector in economic development. The fund's internal rate of return has averaged about 7.2% since 2015, Governor Yasir Al-Rumayyan said in September.
Trump Isolation Deepens on World Stage as Allies Rebuff, Condemn
The war in Iran and President Donald Trump's rhetoric have driven US alliances with Europe near the breaking point.
Hungary's incoming leader Peter Magyar is moving quickly to shake up the system built up over 16 years by his predecessor Viktor Orban. In a tense radio interview today, he told his interviewer that his state news organization would be shut down and relaunched. He also demanded that President Tamas Sulyok quit once Magyar's government has been formed, calling him "morally unsuited" for the job. Sulyok agreed to an accelerated transition schedule, Magyar later said.
Anthropic, whose latest AI model Mythos is so powerful in finding software vulnerabilities that it's been withheld from wide release, has received funding offers that could value it at $800 billion or more, we're told. Anthropic has so far resisted those overtures, even though they would more than double the valuation in its February fundraise. The company could go public in an IPO as soon as October, we reported last month.
From sneakers to AI: Allbirds, the former shoemaker whose market value had dwindled from $4 billion to almost nothing, is pivoting to AI compute infrastructure, it said today. The company will change its name to "NewBird AI" and become a GPU-as-a-Service and AI-native cloud solutions provider. The buzzword-heavy revamp announcement sent Allbirds shares soaring in early trading.
What You'll Need to Know Tomorrow
For Your Commute
Vacationing in Greece Looks Better From 4,000 Feet Above Sea Level
The less-traveled Greek mountains offer the kind of escape you won't find by scrolling.
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