Employees look at oil transport pipelines in the Arabian Sea at Saudi Aramco’s Ras Tanura refinery and oil terminal in Ras Tanura, Saudi Arabia.
Simon Dawson | Bloomberg | Getty Images
Hello, this is Leonie Kidd from London.
The “illusion of abundance” is fading, and predictions that the Strait of Hormuz will soon “return to normal” would be “very optimistic.” This is the warning from commodity industry veteran Jeff Currie as oil prices rise again due to rising tensions in the Middle East.
As U.S. investors return from the Labor Day long weekend, the direction of trade is likely to be determined by the battle over the Straits and what incremental gains can be made to ease the choke point for this vital commodity.
Read more.
What you need to know today
Oil prices are back to six-week highs, with West Texas Intermediate trading above $93 per barrel and Brent crude oil futures climbing towards the $100 per barrel range and currently trading above $97 per barrel in early trading Tuesday.
A new attack on Saudi Aramco’s oil facilities on Monday sent oil markets into a state of tension, the Financial Times reported. The attack came after the US military attacked three Iranian oil tankers.
Retaliatory strikes also contributed to the rise in gasoline prices.
Gasoline prices in the U.S. topped $4 a gallon, hitting a record high heading into Labor Day.
Canada in the crosshairs
Amid rising tensions, Iran has attacked Canada for supporting US actions in the Strait of Hormuz.
In a post on X, Tehran Foreign Ministry spokesperson Esmail Baghai said Canada chose to “appease” the United States “on the very day that the President of the United States openly disrespected Canada’s sovereignty and independence and depicted all of Canada as part of the United States.”
Meanwhile, new Canadian tariffs on about $20 billion worth of U.S. goods go into effect on Tuesday, putting Bombardier in the hot seat. The Canadian aircraft manufacturer detailed its current U.S. footprint after President Donald Trump wrote on Truth Social, “We will no longer sell Bombardier in the U.S.!…If they want our market, they should build here and stop treating the U.S. like a ‘piggy bank.'”
shock of shrugging
While global markets continue to avoid geopolitical shocks, HSBC sees several developments that could end the dynamic. Click here for more information.
U.S. futures are mixed after the Labor Day extended trading break. Japanese stocks are under pressure across Asia as the yen remains near its strongest level against the dollar since February.
mistral model
Mistral, Europe’s AI darling, has raised €3 billion ($3.5 billion) in funding at a valuation of €21 billion ($24 billion). samsung electronics Major investors include EU-backed Scaleup Europe. The French group is trying to position itself as a major rival to OpenAI and Anthropic. Hear from the CEO about Squawk Box Europe.
— Leonie Kidd
And finally…
Inside Italy’s bank M&A boom — and why Wall Street is paying attention
Italy has become the epicenter of Europe’s banking consolidation boom, with a flurry of takeover bids reshaping the country’s financial sector. This video explains what’s driving the deal, how the battle for influence over banks such as Monte dei Paschi and Mediobanca has implications for insurer Generali, and why the outcome could affect European efforts to create large banks that can compete with U.S. rivals.
— Gael Legrand
