Satellite image showing an oil terminal on Kharg Island, Iran, February 25, 2026.
2026 Planet Lab Pbc | via Reuters
Hello, my name is Leonie Kidd and I’m from London. Welcome to another edition of CNBC’s Daily Open.
In some cases, two things can be true at the same time. However, markets were looking at the glass as half-empty in early trading on Monday after US President Donald Trump declared that “a peace deal could happen fairly quickly” but that he “wanted to get Iranian oil.”
The buildup of U.S. forces in preparation for a possible ground invasion has also disrupted news that face-to-face talks could take place in the coming days. Despite the confusion for investors, investors appear to have opted for widespread risk aversion at the beginning of the week.
What you need to know today
“My favorite thing to do is extract oil in Iran,” US President Donald Trump said, outlining a possible escalation of war with Iran that could involve the capture of Kharg Island, Iran’s energy export hub. In comments to the Financial Times on Sunday, he compared the actions in Iran to US military operations in Venezuela, but added that indirect negotiations with Iran were progressing and “a deal could be concluded fairly quickly.”
The comments come as the Pentagon is reportedly preparing for weeks of ground operations in Iran. Thousands of American soldiers and Marines are arriving in the Middle East, the Washington Post reported, citing U.S. officials.
Taken together, these reports suggest the possibility of an escalation of the war with Iran. The fallout has already spooked markets, raising concerns about broader supply chain disruptions and rising global prices.
Oil prices are rising again. On Monday, Yemen’s Iran-backed Houthis fired missiles at Israel following weekend attacks, marking their first direct involvement in the war.
Asia-Pacific markets fell sharply on Monday as the Middle East war entered its fifth week and the conflict escalated despite efforts to find a diplomatic solution. Futures prices in Europe and the United States are indicating negative openings across major markets.
British Prime Minister Keir Starmer will host a roundtable of ministers and business leaders later on Monday, with representatives from energy groups also participating, The Times reported. blood pressure, shell and shipping giant maersk will be present.
Industry leaders have also said the Strait of Hormuz, whose vital shipping route is currently blocked by the war, must reopen by mid-April or supply disruptions could worsen significantly.
In the face of this uncertainty, businesses and other organizations are preparing for a world where conflict and associated oil price fluctuations will become long-term challenges, impacting everything from travel plans to mail delivery.
— Leonie Kidd
