Mohammad Berger Ghalibaf, speaker of the Iranian parliament, gestures and speaks to the media during a press conference in the conference hall of the Iranian parliament building in Tehran, Iran, on December 2, 2025.
Morteza Nicobazul | Nur Photo | Getty Images
Hello, my name is Anique Bao from Singapore. Welcome to another edition of CNBC’s Daily Open.
President Donald Trump has ordered the US Navy to block all ships entering and leaving the Strait of Hormuz, a counterintuitive move that follows renewed talks aimed at reopening the waterway, which is critical for energy supplies, among other things.
As the deadline for the start of the lockdown approaches, investors are on edge, with little visibility into how the blockade will be implemented or how long and severe the oil crisis will need to be priced in.
What you need to know today
Twenty-one hours of peace talks between the US and Iran, hosted by Pakistan over the weekend, ended in a stalemate, with US President J.D. Vance returning home without a deal.
The United States and Iran have been unable to reach an agreement on thorny issues, and Vance highlighted Iran’s refusal to stop developing nuclear weapons as a key issue that has stalled negotiations.
Following the breakdown in negotiations, President Donald Trump said Sunday that the United States would begin a naval blockade of the Strait of Hormuz. In an interview with Fox News, President Trump said the effort was a “total blockade” and “all or nothing,” with no ships allowed to sail until Iran relents.
Oil prices soared more than 8% following President Trump’s announcement. Asian markets fell in early trading on Monday. Meanwhile, U.S. futures fell sharply overnight, with the Dow Jones Industrial Average futures dropping 517 points, or 1.1%. S&P 500 futures fell 1%, and Nasdaq 100 futures fell 1.2%.
In a sign that the economic impact of the war is being felt at home, U.S. consumer confidence fell to an all-time low in April, according to a University of Michigan survey.
In Europe, Hungarian veteran nationalist leader Viktor Orban conceded defeat after a landslide election victory for his upstart opposition Tisza party, a major setback for Russia and its allies in Washington.
— Anique Bao
And finally…
Trump policy, China’s biotech boom brings an end to Europe’s era as a pharmaceutical powerhouse
Europe, once a go-to hub for global pharmaceutical companies, is now being squeezed by President Donald Trump’s aggressive trade and drug pricing policies and China’s explosive biotech boom.
The pharmaceutical industry is a cornerstone of Europe’s economy, but the continent’s declining competitiveness is forcing companies to look elsewhere for investment. And the problem is not just economic. Critical new drug launches are at risk as prices and regulations prevent companies from bringing medicines to market on the continent.
ING Healthcare analyst Diederik Stadig told CNBC that the uncertainty and threat of most-favored-nation pricing in the U.S. “gives drug companies leverage to negotiate with European governments and European regulators,” referring to President Trump’s policy of setting drug prices in the U.S. at the lowest prices paid in other comparable countries.
— Elsa Oren
