A U.S. Army paratrooper prepares an M119 howitzer for a firing mission during a field artillery live fire exercise in the Middle East.
Provided by: US Army
Hello, my name is Hui Jie from Singapore. Welcome to another edition of CNBC’s Daily Open.
The Middle East conflict continues to escalate, and there is no prospect of a diplomatic breakthrough.
Energy Secretary Chris Wright said Sunday there may not be a nuclear deal with the Iranian government. If Iran seeks to rebuild its nuclear capabilities, he suggested, the United States may need to destroy its nuclear arsenal again.
This is not good news for a world in which most countries suffer the consequences of wars in which they have little connection.
The Iran conflict and Ukraine’s attacks on Russian refineries have pushed up oil prices on global markets, leaving U.S. consumers with record diesel prices.
What you need to know today
The U.S. government entered the Iran conflict with two guarantees: that the United States would prevent Iran from acquiring nuclear weapons, and that there would be no renewed “forever war.”
But Wright’s comments suggest the United States may not reach a nuclear deal with Iran, suggesting it may become increasingly difficult to keep those commitments.
Asked if the U.S. would continue attacking Iran as it tries to rebuild its nuclear infrastructure, the Energy Secretary said, “To do that, we need to destroy Iran’s capabilities.”
He added: “We are reducing their ability to develop nuclear weapons and ultimately their ability to deliver nuclear weapons if they develop them.”
The statement appears to contradict assertions by Trump administration officials that early in the conflict, Secretary of Defense Pete Hegseth said the conflict would not lead to forever war, and that President Donald Trump called the conflict “a quick trip.”
Now that “little trip” is starting to look more and more like a quagmire.
U.S. Central Command said Saturday that U.S. forces attacked three Iranian crude oil carriers after the Islamic Revolutionary Guard Corps fired ballistic missiles at two naval warships in the region.
With little sign of progress on the Iran issue, the Trump administration is turning its attention to another conflict that has been going on for years.
Over the weekend, US peace envoys Jared Kushner and Steve Witkoff visited Moscow and Kiev to help end the Russia-Ukraine conflict, but there was no immediate relief in the situation.
Meanwhile, Kiev attacked Russian refineries, further squeezing the oil market.
Oil prices remain high, with diesel prices currently at record highs in the United States. U.S. truck drivers are paying an average of $5.85 a gallon nationwide, an increase of nearly 60% from the same time last year, when diesel prices were $3.71 a gallon.
John Kilduff, a partner at energy hedge fund Again Capital, told CNBC that rising diesel prices will affect Americans whether they drive or not. “You can do as much virtual shopping as you want. It’s all coming to your door in diesel-powered trucks, so there’s no way around it.”
Pressure on the Fed
Ignoring the prospect of higher prices, the Trump administration is ramping up its attacks on Federal Reserve Chairman Kevin Warsh as the Sept. 15 Fed meeting approaches.
Mr. Trump, Vice President J.D. Vance and Treasury Secretary Scott Bessent have in recent weeks urged central banks to cut interest rates, or at least refrain from raising them.
Now, senior economic adviser Peter Navarro has joined that chorus, calling the rate hike “inadvertent” and “hitting exactly the sectors that America needs to thrive the most.”
Mr. Navarro called members of the Federal Open Market Committee, which sets interest rates, “clowns” and added that Mr. Warsh is “trying to do the right thing.”
This comes after Mr. Warsh gave a hawkish assessment of U.S. inflation and suggested that rate hikes could be on the table, saying in Jackson Hole that “inflation is above our 2% target” and that “short-term interest rates are the primary means of achieving dual mandates.”
— Lim Huijie
And finally…
LeBron James hints at partnership with Polymarket
Superstar athlete LeBron James teased an upcoming partnership with prediction market platform Polymarket in a social media post on Saturday.
James posted a 14-second video on social media platform X that appears to be an advertisement for Polymarket. “Welcome to Polymarket HQ. Coming soon. In partnership with @Polymarket,” James wrote.
The post teases a larger football-focused campaign between James and Polimarket, according to the people who spoke to CNBC on condition of anonymity because they were not authorized to speak publicly. Further details are expected to be announced within the next week, the official added.
—Lillian Rizzo, Jessica Golden
