Things were on track for a rough start to the week amid the escalation of the Iran conflict that threatens global energy supplies. Then, soon after 7am ET Monday, President Trump dropped an all-caps social media post that suggested that all will be fine, sending markets ripping.
The big picture: That's good news for Monday's prices of risk assets, but it speaks to a more tumultuous backdrop for global commerce that decision-makers across the global economy are only starting to recognize.
In effect, an entity that has for generations been a source of stability in the world economy — the U.S. government — is now a source of chaos.
President Trump told reporters his envoys had been negotiating with a senior Iranian official and claimed the parties agreed on many points.
Why it matters: Regional leaders and global markets were bracing for major escalation on Monday, but Trump walked back his threat to strike Iran's power plants, citing productive negotiations.
Nvidia and startup Emerald AI said Monday they're working with major U.S. energy companies to develop a new class of data centers designed to flex their power use and connect to the grid faster.
Why it matters: The effort reflects a growing push to turn AI data centers from massive power consumers into more dynamic grid participants, as electricity demand from AI surges.
Oil prices remained well north of $100 per barrel after markets opened Sunday, with the Iran war moving into its fourth week.
Why it matters: The price suggests that traders don't see a near-term end to the conflict, or risks to oil transit in the Strait of Hormuz that's throttling supplies on an unprecedented scale.
President Trump on Saturday night gave Iran a 48-hour deadline to reopen the Strait of Hormuz or else the U.S. will start destroying Iranian power plants.
Why it matters: The threat marks a dramatic reversal from just a day earlier when Trump floated ending the war without reopening the strait, signaling the Hormuz crisis has become the issue he can't walk away from, even as he looks for an exit.
