An Iran-made missile is displayed in front of a mosque at a war museum in Tehran, Iran, on April 2, 2026, amid U.S.-Israeli military operations in Iran. (Photo by Morteza Nikoubazl/NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.
Geopolitics has snapped back into focus. Tensions escalated sharply in the Middle East after Iran launched strikes against the United Arab Emirates, while the U.S. said it sank Iranian ships in the Strait of Hormuz.
These developments spooked investors and sent oil prices surging, prompting analysts to warn of another oil shock and reviving concerns of a broader economic slowdown.
What you need to know today
One of Murphy’s many laws of combat states that “no battle plan ever survives contact with the enemy.” Recent developments in the Middle East offer a stark reminder.
A ceasefire by U.S. President Donald Trump appears to be on shaky ground after Iran launched strikes against the United Arab Emirates. The U.S. Central Command said it sank six Iranian small boats in the Strait of Hormuz.
Trump later escalated the rhetoric, telling Fox News that Iran will be “blown off the face of the earth” if it targets U.S. ships that are protecting commercial vessels transiting the strait.
He also called on South Korea to support U.S. efforts after he claimed a South Korean cargo ship had come under fire from Iran. Seoul had not publicly responded as of the time of writing.
These developments have spooked investors. International benchmark Brent crude futures rose nearly 6% to settle at $114.44 per barrel, while all three major U.S. stock indexes dipped.
Some analysts are sounding the alarm, warning that global economies could be “sleepwalking” into a “big recession”, as investors continue to underestimate the impact of the oil price shock, according to Amrita Sen, founder and director, market intelligence at Energy Aspect.
Speaking to CNBC’s “Squawk Box Europe,” Sen said there is an “extremely misplaced euphoria” among many investors, noting that many continue to view the ongoing energy squeeze as an issue largely confined to Asia.
Her warning is stark: The global economy could be “sleepwalking” into a significant downturn if the energy shock persists.
And it wasn’t just battle plans abroad that unraveled. A proposed $55.5 billion takeover of eBay by video gaming retailer GameStop met a chilly reception from investors.
Shares of GameStop fell around 10% following GameStop CEO Ryan Cohen’s combative interview with CNBC, as doubts mounted over how the company would finance a deal far larger than its own market value.
GameStop is currently valued at less than $11 billion, while eBay’s market cap is nearly $49 billion. The offer of $125 per share by GameStop represents a 46% premium over eBay’s Feb. 4 closing price, when the gaming retail giant started building a stake in the company. However, doubts remain about its feasibility.
In both geopolitics and markets, the same principle seems to apply: plans may look solid on paper, but reality tends to intervene.
— Lim Hui Jie
And finally…
World Cup prize pool nears $900 million as FIFA boosts payouts. Here’s who gets what.
FIFA has increased payments to teams competing in the 2026 World Cup, raising the total distribution to $871 million, making it the most lucrative edition on record.
The minimum payout for each team is at least $12.5 million upon qualification, with additional prize money tied to performance in the tournament.
The 2026 edition of the World Cup is set to be the largest-ever, expanding to 48 teams, up from 32 in 2022. Four national teams — Cape Verde, Curacao, Jordan, and Uzbekistan — are set to make their debuts at this year’s edition.
— Matthew Chin
