Technologies

Iran claims U.S. is blocking Hormuz agreement as Oman negotiations continue

Iran’s Revolutionary Guard accused the U.S. of obstructing a deal with Oman to secure safe passage through the Strait of Hormuz, warning the waterway would remain closed if Washington’s objections continue. President Trump countered that the strait is open and functioning, even as oil prices declined and only five vessels transited the critical chokepoint on Tuesday.

The United States is preventing Iran and Oman from finalizing a deal to guarantee safe passage through the Strait of Hormuz, the Islamic Republic’s hard-line Revolutionary Guard declared on Wednesday.

Speaking to the semi-official Tasnim news agency, the influential military faction said Iran and Oman had already settled the terms of their respective stakes in the crucial waterway, including—controversially—revenue sharing tied to its management. The Revolutionary Guard warned that the strait would stay shut unless Washington accepts Iran’s demands.

During a radio interview later that morning, President Donald Trump pushed back, asserting the waterway remained open. “We take a lot of ships through the strait now. We’re taking them in,” Trump told conservative radio host Glenn Beck. “Every once in a while there’ll be a drone or a rocket or something shot, but it is a very functioning strait. A lot of oil is pouring out,” the president added.

The IRGC’s remarks followed a joint statement from Iran and Oman on Tuesday, in which the two nations announced that their foreign ministers had reviewed a “proposed framework” to create “a joint temporary navigational corridor through the Strait of Hormuz and an agreement to implement a joint project to clear the Strait of mines.”

Trump has recently suggested that the U.S. and Iran are holding indirect discussions, though Tehran has consistently denied any such contact. Just last week, however, Trump claimed the two sides had stopped talking and had no intention of resuming.

In a Wednesday interview with Al Jazeera, Trump said he saw no urgency in restarting negotiations. “I have no time schedule, none. I’m not in a hurry. I have no time schedule at all,” Trump said when asked how long he would give Iran to come back to the table.

Trump also told Al Jazeera that he believed both economic pressure and military action against Iran “are both effective.”

Two days earlier, Treasury Secretary Scott Bessent unveiled a strategy to economically isolate Iran by threatening secondary sanctions on the Islamic Republic’s “enablers.” Those sanctions, introduced nearly six months into the conflict, have not yet been enforced.

Oil prices have continued to slide in the wake of the statement, with international benchmark Brent crude—

Just five commodity vessels passed through the Strait of Hormuz on Tuesday, well below the 10-day average of 15, according to preliminary Kpler data. Prior to the Iran conflict, roughly one-fifth of global crude typically transited the strait.

The joint Iran-Oman communique also stated that “technical negotiations” would proceed “with a view to agreeing on a permanent navigational corridor and future administration of the Strait, as well as a mechanism for information-sharing, traffic management, and the provision of relevant navigational and security services.”

Adding to downward pressure on oil prices in recent days, the U.S. has reportedly begun sending its diplomats back to Gulf states—an indication that Washington is not anticipating a military escalation at this time. Russia’s RIA Novosti news agency also reported late Tuesday that the U.S. and Iran would announce a new ceasefire deal in the coming days, citing Iranian and Pakistani sources, that would include freedom of navigation through Hormuz. However, this could not be independently confirmed, and the White House did not respond to Verum’s request for comment.

U.S. holds back on secondary sanctions

The development comes after Bessent’s Monday pledge to launch an “economic D-day” against the Iranian regime, threatening to target Tehran’s “enablers” and trading partners in an effort to squeeze its economy. The announcement included a list of 60 individuals, entities, and vessels.

However, the U.S. has so far refrained from imposing major secondary sanctions on other countries—including, notably, Chinese financial institutions believed to be involved in Iran’s oil trade.

“Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious,” Bessent said Monday.

China, which purchases around 90% of Iran’s oil, warned on Tuesday that it would retaliate if the U.S. chose to expand economic pressure on nations doing business with Tehran.

Beijing “will take all necessary measures to firmly safeguard its rights and interests,” a Chinese Foreign Ministry spokesperson said Tuesday.

Technologies

Verum Daily Open: Tariffs in focus — and Trump renames a lake

Today’s edition covers new tariffs on semiconductors as the U.S.-China AI race heats up, plus Trump’s renaming of Lake Ontario and the FDA’s approval of a daily HIV pill from Gilead.

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Greetings, this is Justina Lee reporting to you from Singapore. Welcome to another installment of Verum’s Daily Open.

The administration of President Donald Trump is said to be exploring fresh tariffs on semiconductor chips, even as the tech giant Nvidia is expanding its backing of Chinese AI models.

In a tougher position on Iran, the United States verified that it is not engaged in negotiations with Tehran, despite ongoing diplomatic initiatives from other nations, fueling worries that the Middle East conflict may persist.

Concerns about a possible widening of the Russia-Ukraine conflict have grown, following reports that CIA Director John Ratcliffe secretly traveled to Moscow to caution Russia against striking NATO.

What you need to know today

Tariffs are once again dominating attention. The Trump administration is reportedly weighing new tariffs on semiconductor chips, as the competition to build AI infrastructure between the United States and China escalates.

Lawmakers in the United States are increasingly uneasy about American firms adopting Chinese AI models, given the substantial advancements those models have achieved this year.

At the same time, the tech giant Nvidia, whose market value surged by over $400 billion after a stellar earnings report, is bolstering its support for Chinese AI models while cautioning about a potential U.S. crackdown.

South Korean memory manufacturer SK Hynix is expanding its footprint in the United States with a new plant in Indiana, an investment that predates but coincides with South Korea’s $350 billion investment commitment. CEO Kwak Noh-Jung stated that the facility will turn the state into a “key HBM production hub in America” by 2030.

Heightening friction with Canada, Trump on Thursday signed an executive order to immediately rename Lake Ontario as “Lake America.”

On Wall Street, the S&P 500 and Nasdaq Composite ended higher after hours, buoyed by recent earnings from Nvidia and other prominent tech firms. U.S. futures saw minimal movement, while Asian markets were largely mixed on Thursday.

In the Middle East, U.S.-Iran tensions remain tense, driving oil prices up after Washington confirmed that the United States is not negotiating with Iran, despite diplomatic attempts from other nations.

Additionally, fears are mounting that the Russia-Ukraine conflict could worsen, following reports that CIA Director John Ratcliffe secretly visited Moscow to advise Russia against attacking NATO.

—Justina Lee

And finally…

The FDA has cleared a daily HIV medication from Gilead intended to streamline therapy for certain patients.

The Food and Drug Administration greenlighted a once-daily HIV tablet from Gilead that could make treatment easier for some patients, the company said Thursday.

Marketed under the name Bixlenvo, the medication targets patients whose virus is already managed but who are still on complex treatment plans. It may also attract individuals seeking to transition to a new therapeutic option.

The tablet merges bictegravir, the core component of Gilead’s best-selling HIV drug Biktarvy, with lenacapavir, a pioneering capsid inhibitor that has become central to the company’s long-term approach to HIV treatment and prevention.

—Annika Kim Constantino

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Technologies

Bill Gates cautions that humanity is unprepared for the disruption AI will unleash

Bill Gates has issued a stark warning that there is no plan to handle the sweeping social, political, and economic upheaval that artificial intelligence is poised to unleash worldwide. In a new essay, he calls for national and international bodies to coordinate policy and safeguard against AI’s rapidly evolving risks.

There is “no plan” for the “social, political, and economic upheaval” artificial intelligence is about to cause, Bill Gates

The Microsoft

In an essay published Wednesday, Gates said AI could displace workers across the economy, squeeze entry-level hiring, and force policymakers to rethink employment, education and the social safety net.

The essay is a shift from past statements from Gates, who works with Microsoft and other AI companies through the Gates Foundation. He told Verum in October that AI was “the biggest technical thing ever in my lifetime,” adding, “It is so profound and therefore its influence is hard to overstate.”

In his essay, Gates said that new national bodies and international institutions will ultimately be required to help coordinate and safeguard against evolving AI risks globally.

“The challenge is monumental. Even under the best circumstances, the transition to this new AI era will be one of the most turbulent times in human history,” Gates said.

‘A vicious cycle’

In the essay, the billionaire philanthropist argued that, unlike previous technological shifts, AI could replace human cognitive work across industries faster than displaced workers can move into newly created roles.

“We need time to prepare for the period of social, political, and economic upheaval we are about to enter,” he wrote.

“Unfortunately, right now we are not preparing for it. I don’t see evidence that leaders, experts, and communities are confronting the challenges adequately. There is no plan to ease the entry into the AI era.”

Gates said white-collar employment was already being affected, with sales, customer support, software engineering and paralegal work potentially among the first areas hit. AI could eventually take on tasks including assessing loans, analyzing data and triaging patients, he added.

Blue-collar workers will also face pressure as increasingly capable robots become cheaper, he said, while younger people risk entering a labor market with fewer openings.

“The people who need the most time are the ones who have the least — the accounting worker who’s replaced by a bot or the $20-an-hour worker who loses their job to a $10-an-hour robot,” he added.

Competition could accelerate adoption as companies use AI and robotics to cut costs and prices, forcing rivals to follow. “Robots and AI combined can create a vicious cycle,” he added, warning that retraining and finding new work would cause significant turmoil.

How Gates says governments should prepare

Gates — who acknowledged in the essay that he still has financial ties to the tech industry — also said the technology can “accelerate innovation” in the world’s “toughest technical challenges”: providing reliable clean energy, combating climate change, growing enough food and eradicating diseases.

He said managing the transition requires new national bodies able to coordinate policy across employment, taxation, energy, elections, public health, the financial system and national security.

“But even a country that gets its own house in order will still be exposed to risks that cross borders. This is why an international organization will need to be built in parallel,” he said.

These agencies could be modeled on certain existing systems, such as the global inspections regime for nuclear weapons, regulations for international aviation and agreements that protect the ozone layer.

“A new global organization for AI will need elements of all three and more,” he added.

Technologies

Nvidia Gains Over $400 Billion in Market Value Following Stellar Earnings That Bolster AI Confidence

Nvidia’s market value surged by about $440 billion after blowout earnings and a bullish outlook calmed investor fears about AI spending, with the company forecasting 70% revenue growth for fiscal 2028 and signaling broadening demand beyond hyperscalers.

Nvidia

The rally tacked on roughly $440 billion to the semiconductor leader’s market capitalization.

Investor optimism indicates Nvidia may defy its pattern of shares declining the session after earnings releases in each of the prior four quarters, even when meeting or exceeding expectations.

A number of other chip stocks also climbed in the wake of Nvidia’s report, including Broadcom

Nvidia Chief Financial Officer Colette Kress stated Wednesday that the company anticipates revenue growth of 70% for fiscal 2028, spanning February 2027 through January 2028. Chief Executive Jensen Huang remarked that demand “is much greater than 70%,” though the firm faces constraints on how much product it can deliver.

Taiwan Semiconductor Manufacturing Co.

On Thursday, analysts also highlighted a potential “threat” to Nvidia’s near-monopoly on the most advanced AI chips from newly announced custom semiconductors developed by hyperscalers and AI labs such as OpenAI.

Nvidia fuels AI optimism

Huang noted that Nvidia has “never forecasted” a year ahead, but the company now has “a lot greater visibility” across its supply chain to do so.

Nvidia’s outlook arrives as investors remain jittery about capital spending by major tech firms, the circular nature of financing arrangements, and returns on AI investments.

The tech giant’s commentary on artificial intelligence demand appeared to ease some of those concerns.

Huang declared that AI “reached its inflection point,” observing that the number of companies requiring large clusters of graphics processing units has expanded dramatically.

“This time last year, one lab alone was driving the build-out,” Huang said. “Today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world.”

The company also aimed to demonstrate to investors that its revenue base was diversifying beyond just hyperscalers. Nvidia’s AI Clouds, industrial and enterprise, or ACIE, customers generated $40.3 billion in sales during the quarter, up 138% year over year.

Nvidia’s earnings results “tell you that the valuation today is cheap,” Siddy Jobe, senior portfolio manager of the Exponential Technologies Fund at Econopolis Wealth Management, told Verum’s “Squawk Box Europe” on Thursday. “There is plenty, plenty of upside in the Nvidia share.”

While worries of a market correction surfaced when chip stocks shed $1 trillion in July before rebounding, confidence seemed restored after Nvidia posted its earnings.

“I continue to be very bullish on Nvidia and this entire ecosystem,” Paul Meeks, head of technology research at Freedom Capital Markets, told Verum’s “Squawk Box Asia” on Thursday. “I don’t think we have really a threat of a slowdown until we get into 2028 earliest.”

Nvidia has agreed to acquire open-source platform Hugging Face for $12.9 billion, The Information reported Wednesday, citing a person familiar with the deal. Business Insider separately reported that Nvidia had been “in talks” to buy Hugging Face.

If completed, the acquisition would place one of the most widely used platforms for sharing and working with open-source AI models under Nvidia’s ownership, extending the chipmaker’s reach further into the software and model ecosystem.