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A woman walks past war-themed graffiti and murals painted on walls along the capital Tehran's streets and avenues as air defense systems are activated during the night while daily life continues in the shadow of rising military tensions between the US and Iran on July 22, 2026 in Tehran, Iran.
Fatemeh Bahrami | Anadolu | Getty Images
Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.
U.S. President Donald Trump has escalated threats against Iran, saying he would bomb power plants and bridges in the country if it continued to attack ships in the Strait of Hormuz.
The strait is not the only thing to be concerned about. Houthi rebels said they attacked shipping in the Red Sea, which has the Bab al-Mandeb oil chokepoint.
Tech also has been in focus, with Alphabet, Tesla and IBM all reporting their second-quarter earnings.
What you need to know today
While some reports suggest that regional mediators are racing to calm the conflict in Iran, U.S. President Donald Trump has upped the ante, escalating tensions.
Trump on Wednesday threatened to bomb bridges and power plants in Iran if the Islamic Republic attacked shipping in the Red Sea — including those in the country's capital city of Tehran, an action that experts say could constitute a war crime under international law.
Iran responded by threatening to strike U.S.-linked infrastructure and energy facilities across the region if Washington carried out Trump's threat.
Energy markets, already worried by the resumption of hostilities, now have another thing to fret over. Houthi rebels have deployed missile and drone assets to attack ships in the Bab-el Mandab strait in the Red Sea, another crucial chokepoint in the oil market.
Since the closure of the Strait of Hormuz, Saudi Arabia has diverted million of barrels of oil per day through a pipeline to an export terminal on the Red Sea. Those exports have acted as a crucial relief valve for global oil markets during the conflict.
A closure of Bab el-Mandeb would block in those barrels, exacerbating the disruption triggered by Iran's attacks on tankers in Hormuz.
International benchmark Brent closed at $94.07 per barrel, recording a gain of over 3% on Wednesday. U.S. West Texas Intermediate crude advanced about 3% to settle at $86.83.
Brent was up 1.67%, while WTI futures rose 1.39% in Asia trading Thursday.
Tech earnings
Investors are watching tech firms as they release their second-quarter results.
Alphabet reported better-than-expected revenue for the second quarter on Wednesday, driven by growth of 82% in its cloud business.
Despite this, shares declined about 3% as the company announced a massive increase in capex spend in 2026, as high as $205 billion, to keep pace with the booming artificial intelligence demand.
In another case of how AI is still firmly in Big Tech's sights, Advanced Micro Devices on Wednesday announced a strategic partnership with Anthropic and said it will invest up to $5 billion in the artificial intelligence company "in the future."
But its not all rosy for every tech firm out there.
Tesla reported weaker-than-expected earnings for the second quarter even as revenue topped estimates. The firm was dragged by softer margins and soaring operating costs, as it poured money into artificial intelligence and other research and development projects.
IBM lowered its 2026 forecast and delivered weaker earnings than analysts had projected on Wednesday, even after the company issued an earnings warning last week.
