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Home » CNBC Daily Open: Ceasefire is at risk of collapsing
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CNBC Daily Open: Ceasefire is at risk of collapsing

Editor-In-ChiefBy Editor-In-ChiefMay 5, 2026No Comments4 Mins Read
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On April 20, 2026, U.S. forces patrol the Arabian Sea near the M/V Tuska after firing on an Iranian-flagged vessel that the U.S. accused of attempting to violate the U.S. Navy’s naval blockade of an Iranian port near the Strait of Hormuz.

US Navy | Getty Images

Hello, my name is Leonie Kidd and I’m from London. Welcome to another edition of CNBC’s Daily Open.

The Middle East’s fragile ceasefire is facing its biggest test yet, with attacks from Iran escalating dramatically overnight. For now, investors appear unsure of how to trade the latest developments.

There’s still plenty of earnings to analyze, with big European banks and U.S. technology and media stocks leading the charge.

Unusual trading is expected as Britain returns from a long weekend and many markets in Asia are still closed, with some trying to catch up.

What you need to know today

An already fragile ceasefire between the United States and Iran appeared to be on the verge of collapse on Monday, after the United Arab Emirates came under attack by Iranian drones and missiles and the United States said it had sunk an Iranian ship in the Strait of Hormuz.

US President Donald Trump warned in a Fox News interview late Monday that Iran would be “blown off the face of the earth” if it targeted US ships protecting commercial ships passing through the strait.

President Trump also said in a post on Truth Social that a South Korean cargo ship had come under fire from Iran in the waterway. “Maybe it’s time for South Korea to join this mission!” Trump wrote in the post.

Market reaction has been muted so far today, with stocks across Asia trading mixed and European stocks opening lower, while U.S. futures are little changed after falling across the board on Monday.

But there are signs of stress, with Australia’s central bank raising its policy rate to 4.35% on Tuesday, the highest level since December 2024, in response to rising inflation.

The RBA said in a statement that inflation accelerated significantly in the second half of 2025, with conflicts in the Middle East causing prices of fuel and related goods to soar, further accelerating inflation.

In earnings news, HSBC reported lower-than-expected first-quarter pre-tax profits due to higher expected credit losses and other impairment charges. The bank’s chief financial officer, Pam Kaul, told CNBC’s “Access Middle East” that the bank still reiterated its goals for 2026, 2027 and 2028.

On the other hand, major Italian banks UniCredit beat its own expectations, with first-quarter net income up 16% and revenue up 5%.

That was the case in America Palantir, paramount and pinterest Overnight, it took control of the content of the report. Palantir beat expectations with 85% revenue growth, marking its fastest expansion since its market debut in 2020. Paramount’s revenue and earnings also beat expectations, boosted by the media group’s streaming business. And Pinterest stock rose more than 15% on a strong quarter and bullish guidance from social media companies.

— Leonie Kidd

And finally…

The total prize money for the World Cup approaches $900 million after FIFA increased its payouts. Here’s who gets what:

FIFA has increased payments to teams participating in the 2026 World Cup, with total distribution reaching $871 million, making it the most lucrative edition in history.

The minimum payout for each team is at least $12.5 million upon qualification, with additional prize money determined by performance in the tournament.

The 2026 World Cup will be the largest in history, expanding from 32 teams in 2022 to 48 teams. Four national teams will be participating in this year’s tournament for the first time: Cape Verde, Curaçao, Jordan and Uzbekistan.

— Matthew Chin

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