Tourists passing by the Capitol Building in Washington, DC, USA, and their reflection in the window of a parked ambulance on April 14, 2026.
Evelyn HochsteinReuter
Hello, my name is Dylan Butts from Singapore. Welcome to another edition of CNBC’s Daily Open.
The market appears to believe that a deal between the US and Iranian governments is within reach.
Stocks extended their gains again on Tuesday, with the S&P 500 climbing toward record levels as investors bet that U.S.-Iran negotiations were on track.
But that optimism may be ahead of reality. Negotiations have already stalled once, with the Strait of Hormuz now under a new blockade by the United States in lieu of a full reopening.
What you need to know today
Stock markets continue to rise on hopes that a deal between the US and Iran is taking shape, with a White House official telling CNBC on Tuesday that a second round of negotiations is under discussion between the US and Iran.
The S&P 500 index is near record highs and closed in positive territory for the ninth time in a decade on Tuesday, while the tech-heavy Nasdaq posted its 10th straight gain. Asia-Pacific markets followed Wall Street and started higher on Wednesday.
Meanwhile, crude oil prices widened their recent decline.
However, the resolution of the situation in the Middle East remains unclear. Talks between U.S. and Iranian negotiators in Islamabad stalled over the weekend, with President Trump announcing the U.S. would close the Strait of Hormuz, a key trade route that normally carries about 20% of the world’s oil supplies.
More than 10,000 U.S. sailors, marines and airmen are manning the blockade, along with more than a dozen warships and dozens of aircraft, according to U.S. Central Command.
The blockade has further cut off traffic in the strait, which has slowed to a trickle despite President Trump’s insistence on April 7 that a two-week ceasefire agreement with Iran was dependent on its full reopening.
The main point of contention between the two countries over the ceasefire is Israel’s attack on Lebanon. U.S. Secretary of State Marco Rubio hosted the first direct talks between Israel and Lebanon in decades, but it was not immediately clear whether a framework for peace had been agreed.
Broader economic risks remain a concern. Citadel CEO Ken Griffin has warned that prolonged disruption in the Strait of Hormuz could push the global economy into recession.
Meanwhile, experts told CNBC that if the Strait of Hormuz blockade continues, Europe’s aviation industry is at risk of a “systematic” jet fuel shortage in the coming weeks, which could lead to hundreds of flight cancellations.
The conflict has also heightened tensions between major powers. US Treasury Secretary Scott Bessent accused China of being an unreliable global partner during the Middle East wars, claiming that China had hoarded oil supplies and placed export restrictions on some goods.
In corporate news, meta and broadcom announced an extended partnership through 2029 to develop Meta’s custom in-house AI accelerator.
Separately, Meta said Broadcom CEO Hock Tan told Meta last week that he had decided not to stand for re-election to Meta’s board of directors, according to the filing.
— Dylan Butts
And finally…
Central banks were buying gold at record levels. Here’s why it’s selling now.
Gold’s decline reveals a rare shift in the market. After years of relentless accumulation, some central banks are now selling bullion as pressure from Iran’s war forces them to scramble for cash.
Spot gold, currently trading at around $4,838 an ounce, is down about 10% from its late January highs and is in correction territory even as geopolitical risks increase. The move marks a clear reversal from last year’s bull market, when central bank purchases helped support prices despite rising interest rates.
Nicky Shields, head of metals strategy at MKS Pump, told CNBC: “We’ve seen a noticeable sell-off in central bank gold by some market participants.”
— Ying Shan Li
